Investing.com - The Aussie gained sharply on Tuesday after solid results for a closely-watched business survey and with the yen reversing earlier gains as investors send the pound higher despite Britain possibly moving quicker than expected to head for Brexit.
USD/JPY changed hands at 103.00, up 0.20%, while AUD/USD traded at 0.7588, up 0.72%. GBP/USD traded at 1.3091, up 0.77%.
In Australia, the NAB business confidence survey for June came in at plus-6, a better reading than the previous level at plus-3, and the business survey for June reached plus-12, also better than a previous reading of plus-10.
NAB Chief Economist Alan Oster said the survey suggests the RBA should be reasonably comfortable with the present state of economic activity, even in the wake of recent events that cloud the outlook. "However, the view on inflation is arguably more important at this juncture, and the survey is not suggesting any meaningful turnaround in near-term inflation pressures. These trends justify the highly accommodative setting for monetary policy," he said.
Oster added that while the August RBA meeting following Q2 inflation data is likely to be 'live', current information suggests rates will remain on hold.
Earlier in Japan, producer prices fell 4.2% as expected.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.25% to 96.34.
Overnight, the dollar held onto gains against the other major currencies in subdued trade on Monday, as Friday’s strong U.S. employment data continued to boost optimism over the strength of the economy.
The Labor Department reported on Friday that the U.S. economy added 287,000 jobs last month, well above the 175,000 jobs forecast by economists. Average hourly earnings were up 2.6% compared with a year earlier.
The report also showed that the unemployment rate ticked up to 4.9% and May’s payrolls figure was revised down to 11,000 from a previously reported 38,000, the smallest monthly increase since 2010.
The strong jobs report was seen as unlikely to alter the Federal Reserve’s cautious plans for raising interest rates.
The pound briefly rose above the 1.30 level against the dollar on Monday, boosted by prospects that Theresa May will become the next U.K. prime minster much earlier than had been anticipated.
The news came after Andrea Leadsom, one of the two candidates from Britain’s ruling Conservative Party to succeed Prime Minister David Cameron pulled out of the race.
But sterling remained under pressure amid mounting expectations for a rate cut from the Bank of England at the conclusion of its policy meeting on Thursday.