Investing.com - The Aussie held early Asian gains on Wednesday despite a downbeat reading on consumer sentiment and weaker than expected housing finance data.
AUD/USD traded at 0.7054, up 0.51%, while USD/JPY changed hands at 120.30, up 0.41%.
The September Westpac-MI Consumer Sentiment gauge fell 5.6% to 93.9, receding from a gain of 7.8% to 99.5 the previous month.
"The Reserve Bank board next meets on Oct. 6. We expect the board will maintain its steady rates policy for the remainder of this year and throughout 2016. The key to any decision to further cut rates, as expected by the financial markets, will be whether the bank's current forecast that the unemployment rate can stabilize around current levels proves sustainable," Westpac chief economist Bill Evans said.
As well, July housing finance rose 0.3%, well below thea gain of 0.8% expected month-on-month after a 4.4% jump the month before.
Ahead, RBA Deputy Governor Philip Lowe is due to speak at CEDA event in Melbourne. CEDA website says Lowe will give a keynote address on economic conditions and prospects in the Australian economy.
In Japan, the Cabinet Office releases August Consumer Confidence Survey at 1400 Tokyo time (0500 GMT). In July, the consumer confidence index fell 1.4 points to a seasonally adjusted 40.3 for the first drop in two months, slumping to the lowest reading since 39.5 in January.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% at 95.95.
Overnight, the dollar slipped lower against against the other major currencies in subdued trade on Tuesday, amid mounting uncertainty over whether or not the Federal Reserve will raise interest rates at its meeting this month.
Sentiment on the greenback remained fragile after Friday's U.S. jobs report failed to provide much clarity on when the Fed will decide to raise short term interest rates.
The Labor Department reported that the U.S. economy added 173,000 jobs last month, the smallest increase in employment in five months and was below expectations for 220,000, while the unemployment rate ticked down to 5.1%, its lowest level since April 2008.
Meanwhile, the single currency remained supported after the European Central Bank indicated last week that it could scale up its quantitative easing program amid increased risk to the region’s inflation outlook from slowing growth in China and falling oil prices.