Investing.com - The Aussie held steady to stronger on Tuesday and the yen gained as a slew of data in Asia pained a mixed outlook for regional growth and China in particular.
AUD/USD traded at 0.7117, up 0.06%, while USD/JPY changed hands at 120.67, down 0.46%. The Shanghai Composite fell more than 4% in morning trade.
In Australia, the AIGroup Manufacturing Index rose 1.3 points to 51.7, while second quarter current account data are due from Australia, expected to show the deficit widened to A$19.0 billion, compared to an expected A$15.80 billion. Building approvals in Australia rose 4.2% in July, well above the 2.5% gain seen
Later in the day, the RBA's cash rate decision takes center stage at 1430 (0430 GMT). The unanimous forecast is for the rate to be left on hold at a record low 2.0% for the fourth straight month.
The RBA's commodity price index is also due. In July the index fell 5.0%.
In Japan, second quarter financial Statements Statistics of Corporations showed a 5.6% gain for capital spending year-on-year, below the 9.0% gain seen.
Later, July preliminary wages are due at 1030 (0130 GMT). In June, the total average monthly cash earnings per regular employee in Japan fell a revised 2.5% from a year earlier and posting the first year-on-year drop in seven month.
In China, the August CFLP Manufacturing and Service PMI reached the expected 49.7 reading while services eased to 53.4 from 53.9 in July.
The August Caixin final Manufacturing PMI reached 47.3, up from a a preliminary 47.1 reading -- a six-and-a-half-year low that did much to knock investor sentiment when it was released earlier this month, helping to fuel last week's calamitous global markets sell-off.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.40% to 95.57.
Overnight, the dollar pared losses against against the other major currencies on Monday, even after data showed that anufacturing activity in the Chicago-area expanded at a slower pace than expected in August, as expectations for an upcoming U.S. rate hike continued to support.
Market research group Kingsbury International said its Chicago purchasing managers’ index declined by 0.3 points to 54.4 this month from a reading of 54.7 in July. Analysts had expected the index to hold steady at 54.7 in August.
The dollar remained supported after Federal Reserve Vice Chairman Stanley Fischer said Friday it was still too early to decide whether to raise interest rates from near zero at the bank’s September meeting.
Investors were looking ahead to Friday’s U.S. jobs report for August, which could help to provide clarity on the likelihood of a near-term interest rate hike.