Investing.com - The yen held stronger after a lower than expected unemployment figure and investors looked ahead to the Reserve Bank of Australia unveiling its latest views on interest rates with a majority of analysts expecting stable at a record low 2.0%.
USD/JPY changed hands at 112.27, down 0.35%, while AUD/USD was quoted at 0.7116, down 0.36% after downbeat China PMI surveys.
China's Caixin PMI for February came in at 48, below the 48.3 expected and last month's level of 48. A figure below 50 suggests contraction.
Earlier in China, the semi-official manufacturing PMI for February fell to 49, weaker than the 49.3 expected and last month's 49.4 level, while the non-manufacturing PMI came in at 52.7, below the last reported at 53.5.
For the China Federation of Logistics and Purchasing manufacturing it was its weakest level since November 2011.
The CFLP said in an accompanying statement that production, new orders and amount of purchase fell sharply in February because of the week-long Chinese New Year holiday.
"Input prices for iron and steel and non-ferrous metal industries saw marked increases. If the recovery momentum becomes a trend, it will help to improve companies profitability and further boost production," said the CFLP.
The CFLP also noted a spike in the sub-index measuring business expectations, jumping to 57.9 in February from 44.4 in January, suggesting strong confidence by Chinese companies over the future outlook.
Earlier in Japan, household spending data for January fell 3.1%, more than the expected drop of 2.7% year-on-year.
As well, the unemployment rate for January fell to 3.1%, better than the steady 3.3% seen and fourth quarter capital spending rose 8.5%, less than the 8.8% gain expected.
Later, the manufacturing PMI is due and seen at 50.2 for February, unchanged from the previous month.
In Australia, the AIG manufacturing index for February came in at 53.5, up from 51.5 previously.
Also, building approvals for January dropped 7.5%, well below the expected a 2.0% fall month-on-month. And the current account deficit came in at A$21.1 billion, wider than the $20 billion seen for the fourth quarter, while data on private house approvals showed a drop of 6.0%.
Earlier, in New Zealand, the fourth quarter terms of trade index fell 2.0% quarter-on-quarter, compared to a drop of 3.7% previously.
NZD/USD traded at 0.6598, up 0.14%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was quoted at 98.16, down 0.12%.
Overnight, the dollar rose to fresh three-week highs against the other major currencies on Monday, despite the release of disappointing U.S. housing sector data as Friday’s stong U.S. economic growth continued to support.
The U.S. National Association of Realtors said its pending home sales index sank by 2.5% last month to hit a one-year low, confounding expectations for a gain of 0.5%.
The disappointing data came after market research group Kingsbury International said its Chicago purchasing managers’ index tumbled by 8.0 points to 47.6 this month from a reading of 55.6 in January. Analysts had expected the index to fall 2.6 points to 53.0 in February.
The greenback remained supported however after data on Friday showed that while the U.S. economy slowed in the fourth quarter, the pace of the slowdown was not as steep as initially estimated.
But the safe-haven yen was stronger after continued to be underpinned after China took steps to weaken its currency and bolster market liquidity on Monday, adding to concerns over the outlook for the world’s number-two economy.
Data showed that the euro zone’s consumer price inflation fell by 0.2% this month, missing expectations for a gain of 0.1% and following a 0.3% increase in January.
It was the first negative inflation figure since September, when consumer prices fell 0.1%, and is well below the European Central Bank’s target of close to but just below 2.0%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by 0.7% in February, below forecasts for 0.9% and down from 1.0% a month earlier.