Forex - Aussie stronger ahead of RBA minutes, China Q3 GDP

Investing.com - The Australian dollar gained in early Asia on Tuesday ahead of central bank board meeting minutes and key economic data from China.

AUD/USD traded at 0.8791, up 0.07%, while USD/JPY changed hands at 106.93, down 0.01%. EUR/USD traded at 1.2795, down 0.04%.

At 0030 GMT, the Reserve Bank of Australia releases board meeting minutes from October. Later on, Deputy Governor Philip Lower speaks at 0855 GMT.

At 0200 GMT, China is expected to release third quarter GDP data, with a gain of 7.3% forecast year-on-year, as well as industrial output for September, seen up 7.5% on year, and September retail sales, expected to have gained 11.8%.

Overnight, the dollar traded largely lower against most major currencies, albeit in tight trading ranges as investors priced in the possibility that softer European and Asian economies could dampen U.S. recovery.

While many investors have priced in a cooler global economy into trading, concerns the U.S. may feel some fallout allowed the dollar to soften on Monday.

Germany’s Bundesbank reported earlier the country’s economy barely grew in the third quarter, as industrial output slowed and business sentiment deteriorated.

In its monthly report the German central bank said that while the euro zone’s largest economy was unlikely to enter a recession the economic outlook for the fourth quarter was cautious.

The ECB launched its new stimulus program on Monday, purchasing covered bonds in a bid to increase liquidity in the region.

Still, the dollar softened against the euro on concerns that even though the Federal Reserve is seen closing its monthly bond-buying program next week, rate hikes may come later in 2015 than once anticipated to make sure cooling European and Asian economies won't seriously dampen U.S. recovery.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% at 85.08.

On Tuesday the U.S. is to release private-sector data on existing home sales.