Investing.com - The Aussie fell in early Asia on Wednesday as GDP data ahead is expected set the tone.
AUD/USD traded at 0.7676, down 0.16%, while USD/JPY changed hands at 102.03, up 0.01%.
In Australia, second quarter GDP data is due with a gain of 0.6% seen quarter-on-quarter and a pace of 3.4% expected year-on-year. Earlier, the AIG construction index for August slumped into contraction at 46.6 from 51.6.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 94.80.
Overnight, the dollar extended losses against the other major currencies on Tuesday, after data showing that U.S. service sector activity grew at a slower pace than expected in August further dampened expectations for a U.S. rate hike before the end of the year. According to Investing.com's Fed Rate Monitor Tool, investors are pricing in an 18% chance of a rate hike at the Fed's September 20-21 meeting in wake of last week's disappointing U.S. employment data.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 51.4 last month from 55.5 in July. Analysts had expected the index to drop to 55.0.
The data came after downbeat U.S. employment data published last Friday crushed expectations for an upcoming rate hike by the Federal Reserve.
Earlier Tuesday, data showed that German factory orders rose 0.2% in July, confounding expectations for a 0.5% increase. Factory orders ticked down 0.3% in June, whose figure was revised from a previously reported 0.4% fall.
Market participants were looking ahead to the European Central Bank’s policy meeting on Thursday, amid speculation over potential stimulus measures.