Forex - USD/JPY flat as Ukraine events studied, AUD awaits RBA minutes

Investing.com - The Japanese yen traded nearly flat on Tuesday as investors eye the impact of sanctions imposed by Western governments on Russia following a referendum in the Crimean peninsula of the Ukraine to join Moscow.

USD/JPY traded at 101.82, up 0.05%, while AUD/USD traded at 0.9084, down 0.04%. EUR/USD traded at 1.3925, up 0.02%.

Early in the Asian session, the Reserve Bank of Australia releases the minutes of its recent policy meeting at 1130 Sydney (0030 GMT). Few surprises are expected as Governor Glenn Stevens made detailed comments on policy in testimony to parliament last week.

In Japan, January cash earnings data are due at 1030 Tokyo (0130 GMT), followed by the MOF's JGB auction results. The MOF is due to auction ¥1.2 trillion of 20-year bonds and ¥2.5 trillion of 1-year Treasury bills.

Overnight, the dollar traded mixed against most major currencies as investors applauded waning fears that the Ukraine standoff will escalate and hit-or-miss U.S. production data softened the greenback.

More than over 90% of Crimean voters on Sunday chose to break with Ukraine and join Russia. Crimea's Parliament on Monday formally asked to join the Russian Federation.

Sanctions followed as expected.

European Union foreign ministers imposed travel bans and asset freezes on 21 people they have linked to the push to have Crimea secede from Ukraine and be annexed by Russia. U.S. President Barack Obama also imposed sanctions on several Russian officials involved in the incursion of Crimea, which included freezing assets in the U.S.

Still, markets were expecting more widespread action from the West, and the limited extent of the action enticed investors away from safe-haven gold positions, which softened the precious metal.

Gold has served as a safe-haven of choice during the Ukraine crisis, and the dollar found room to rise somewhat as gold fell, as the two assets tend to trade inversely with one another.

Data revealed earlier that U.S. industrial production rose 0.6% in February, exceeding expectations for a 0.1% gain. Industrial production in January was revised to a 0.2% fall from a previously estimated 0.3% decline.

In a separate report, the Federal Reserve Bank of New York said its Empire State manufacturing index ticked up to 5.6 this month from 4.5 in February, missing expectations for a rise to 6.0.

The conflicting data sent many to the sidelines awaiting the Federal Reserve's March decision on monetary policy due out on Wednesday, the first under new Chair Janet Yellen.

In Europe, official data revealed earlier that the euro zone's consumer price index rose 0.3% last month, below expectations for a 0.4% increase, after a 1.1% decline in January.

Year-on-year, consumer price inflation rose 0.7% in February, compared to expectations for a 0.8% increase, after a 0.8% gain in January.

However, core consumer price inflation, which excludes food, energy, alcohol, and tobacco, rose 0.5% in February, after a 1.7% fall the previous month and in line with market expectations.

The euro zone's core consumer price index rose 1.0% in February, also in line with expectations.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% at 79.50.

On Tuesday, the U.S. is to produce data on consumer inflation, in addition to reports on building permits and housing starts.