Forex - Aussie weaker ahead of NAB survey, possible China loan, FX data

Investing.com - The Australian dollar edged lower in early Asia on Tuesday ahead of likely data from China on currency holdings and loans and a closely watched business survey at home.

AUD/USD traded at 0.7587, down 0.03%, while USD/JPY changed hands at 120.11, down 0.02%. EUR/USD was quoted at 1.0572, up 0.05%.

From China data releases this morning are possible for first quarter forex reserves and new loans and money supply. In Australia, the NAB Business Confidence & Business Conditions are due at 1130 (0130 GMT). In February, confidence failed to improve despite the RBA's 25 basis points cash rate cut but expectation is for some increase in March. Conditions also remained subdued and pointed to below-trend growth in the economy, and this is expected to continue in the March survey.

Elsewhere, central bank decisions are due in Singapore and Indonesia. The Monetary Authority of Singapore is due to announce its policy statement at 0800 local time (0000 GMT) together with the government's advance Q1 GDP data.

Bank Indonesia's rate decision is due around 1530 Jakarta time (0630 GMT).

Overnight, the dollar pared gains against a basket of other major currencies in thing trade on Monday, but remained supported by growing expectations for a U.S. rate hike in the coming months.

Demand for the dollar remained supported by expectations for higher interest rates, as investors regained confidence that the U.S. economy would continue to recover after recent economic reports pointed to a slowdown at the start of the year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was quoted at 99.79, up 0.05% in early Asia.

Sentiment on the euro remained vulnerable amid ongoing uncertainty over Greece’s bailout. Talks between Athens and its lenders on proposed economic reforms were expected to resume later Monday, ahead of a meeting of euro area finance ministers on April 24.