Investing.com - The Aussie held weaker in Asia on Monday as investors await a federal budget update seen as crucial for S&P Global Ratings in assessing the country's AAA sovereign rating.
AUD/USD traded at 0.7293, down 0.19%, while USD/JPY changed hands at 117.79, down 0.13%.
In Japan, the trade balance for November came in at ¥153 billion in surplus, narrower than the ¥227 billion surplus seen. Exports fell 0.4% year-on-year and imports slumped 8.8%. Ahead, China reports house prices for November.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 102.92.
In the week ahead, market players will be eyeing the release of Thursday’s final reading on U.S. third quarter gross domestic product for fresh indications on the strength of the economy and further hints on the future path of monetary policy.
Meanwhile, market participants will be awaiting a monetary policy announcement from the Bank of Japan on Tuesday, with most investors expecting the bank to hold its negative interest rates and 10-year government bond yield target steady.
Last week, the U.S. dollar edged lower against the other major currencies on Friday, but remained near a 14-year high as the first U.S. interest-rate hike in a year and the prospect of a more-aggressive Federal Reserve in 2017 continued to lend support.
The U.S. central bank predicted it would raise interest rates three times in 2017, up from the two hikes predicted in September. Higher rates boost the dollar by making the currency more attractive to yield-seeking investors.