Investing.com - The Aussie was flat in early Asian on Tuesday as the Reserve Bank of Australia is slated to unveil its latest views on interest rates with a majority of analysts expecting stable at a record low 2.0%.
In New Zealand, the fourth quarter terms of trade index fell 2.0% quarter-on-quarter, compared to a drop of 3.7% previously.
NZD/USD traded at 0.6594, up 0.08%. USD/JPY changed hands at 112.34, down 0.28%, while AUD/USD was quoted at 0.7140, flat.
In Japan ahead, household spending data for January is expected to show a drop 2.7% year-on-year. As well, the unemployment rate for January is seen steady at 3.3% and fourth quarter capital spending is expected up 8.8%. Later, the manufacturing PMI is due and seen at 50.2 for February, unchanged from the previous month.
In Australia, the AIG manufacturing index for February came in at 53.5, up from 51.5 previously. Later, building approvals for January are expected to show a 2.0% fall month-on-month. And a current account deficit of A$20 billion for the fourth quarter is seen along with data on private house approvals.
In China, the semi-official manufacturing PMI for February is due with a figure of 49.3 expected as well as the non-manufacturing PMI last reported at 53.5. Also up in the Caixin PMI seen at 48.3 from 48.4 in the previous month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 98.28.
Overnight, the dollar rose to fresh three-week highs against the other major currencies on Monday, despite the release of disappointing U.S. housing sector data as Friday’s stong U.S. economic growth continued to support.
The U.S. National Association of Realtors said its pending home sales index sank by 2.5% last month to hit a one-year low, confounding expectations for a gain of 0.5%.
The disappointing data came after market research group Kingsbury International said its Chicago purchasing managers’ index tumbled by 8.0 points to 47.6 this month from a reading of 55.6 in January. Analysts had expected the index to fall 2.6 points to 53.0 in February.
The greenback remained supported however after data on Friday showed that while the U.S. economy slowed in the fourth quarter, the pace of the slowdown was not as steep as initially estimated.
But the safe-haven yen was stronger after continued to be underpinned after China took steps to weaken its currency and bolster market liquidity on Monday, adding to concerns over the outlook for the world’s number-two economy.
Data showed that the euro zone’s consumer price inflation fell by 0.2% this month, missing expectations for a gain of 0.1% and following a 0.3% increase in January.
It was the first negative inflation figure since September, when consumer prices fell 0.1%, and is well below the European Central Bank’s target of close to but just below 2.0%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by 0.7% in February, below forecasts for 0.9% and down from 1.0% a month earlier.