Investing.com - The dollar held gains into Asia on Tuesday as investors looked ahead to the latest policy review from Australia's central bank.
USD/JPY changed hands at 111.79, up 0.05%, while AUD/USD traded at 0.7650, down 0.12%. EUR/USD held weaker, down 0.18% to 1.0729.
The Reserve Bank of Australia is expected to keep rates on hold at a record low 1.50%. Later, China FX reserves for January are possible with some analysts expecting a surprise on the upside related to the stronger dollar.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, flitted around the 100 level, up 0.10% in Asia to 99.94.
Earlier, Reserve Bank of New Zealand Governor Graeme Wheeler announced he would not be seek a second term at the helm of the central bank when his current five-year term ends on Sept. 26. The RBNZ will begin the process to pick a successor later in the year and Grant Spencer, deputy governor and head of financial stability, will serve a six-month term as acting governor while the search is conducted.
Overnight, the U.S. dollar rose against a currency basket on Monday while the euro fell to one-week lows after European Central Bank President Mario Draghi downplayed calls for the bank to scale back its stimulus program.
The euro hits the day’s lows after Draghi said the recent rise in euro zone inflation is temporary and due almost entirely to rising oil prices and reiterated that underlying inflation remains very subdued. The euro had already come under pressure earlier in the day as concerns over the possibility of a Brexit or Trump-style shock result in France’s presidential election refocused investors’ attention back to the political risks facing the euro zone.
Marine Le Pen, head of the far-right National Front party, launched her presidential bid on Sunday with promises to exit the euro zone and protect France against globalization.
The dollar steadied after falling on Friday when the latest U.S. employment report showed that while jobs growth beat expectations last month wage growth remained tepid. The slowdown in wage growth looked likely prompt the Federal Reserve to adopt a more cautious approach on raising interest rates this year.
The Fed, which last hiked rates in December, has forecast three rate hikes this year.
According to Investing.com's Fed Rate Monitor Tool less than 10% of traders expect the Fed to raise interest rates at its next meeting in March. The chance of a June increase is seen at just below 50%.