Forex - Aussie weaker ahead of NAB survey, China data on prices

Investing.com -The Australian dollar was down ahead of a survey on business outlooks and as China gets set to release price data that will be closely watched for signs of deflation.

AUD/USD traded at 0.7687, down 0.25%, while USD/JPY changed hands at 121.27, up 0.09% and EUR/USD fell 0.05% to 1.0847 as Greece talks continue.

In Australia comes NAB Business Conditions and Business Confidence are due at 1130 Sydney time (0030 GMT). Both conditions and confidence were below the
long-run average in January and some improvement in response to the RBA's cash rate cut in February would be looked favorably by the market.

In China, Feb CPI and PPI data are due at 0930 local time (0130 GMT). Confirmation that the CPI rose 0.9% year-on-year against January's 0.8% gain and that the PPI dropped 4.4%, more than the previous 4.3% fall, will help explain the surprise decision to cut benchmark interest rates for a second time in three months last weekend, ahead of the start of the politically-sensitive NPC meetings.

Overnight, the dollar remained lower against a basket of other major currencies on Monday, holding just under a 11-1/2 year peak as investors locked in profits from Friday's rally sparked robust U.S. jobs data.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 97.64, up 0.01%.

Friday’s stronger-than-expected U.S. employment report solidified expectations that the Federal Reserve will raise interest rates around the middle of this year, boosting the dollar.

The euro remained under pressure as the eurogroup of euro zone finance ministers prepared to hold talks to discuss a reform package put forward by Greece as part of its bailout review.

Last month Athens reached a temporary agreement with its lenders to extend its bailout by four months, but the reform package must be signed off by creditors before it can access further financial aid.

Ahead of the talks eurogroup head Jeroen Dijsselbloem warned that Greece must stop wasting time and start developing its reform package.

Also Monday, the European Central Bank confirmed that it started asset purchases under its quantitative easing program.