Aussie flat in early Asia
Investing.com — The Aussie flat minutes ahead of held in early Asia on Tuesday with the Central Bank on the sound.
AUD/USD traded 0.7852, flat, while USD/JPY changed hands at 112.16, below 0.03%. NZD/USD rose 0.11% to 0.7176. EUR/USD gained 0.02% to 1.1798
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last up quoted by 0.24% to 93.14.
New Zealand reports CPI for the third quarter of the 0.4% gain seen over the previous quarter and by 1.8% pace year-on-year.
The RBA meeting minutes are expected to show concern about housing, the risks and the labour market.
Overnight, the dollar traded modestly higher against a basket of major currencies on upbeat manufacturing data, but gains were limited as investors worried about a continued slowdown in the inflation, expressed on the mood.
The dollar traded sideways as the beginning of the session optimism on the back of upbeat manufacturing data fades in the midst of investor concerns about the return of Inflation following Friday’s inflation report.
The Federal Reserve Bank of New York says that its Empire State manufacturing index rose from 30.2 in October, after reaching 24.4 the previous month. Any value less than zero points will decrease.
The labor Department said on Friday its consumer price Index rose 0.5% last month after advancing 0.4% in August. The missed economists forecast of 0.6%.
The subdued inflation data but failed to deter the confirmed the expectations of the investors for a year-end rate increase after the Fed Chairman Janet Yellen on Sunday, the Federal Reserve’s commitment to raising the prices.
«The U. S economy continues to be strong, and the strength of the labour market calls for further gradual increases in interest rates,» Yellen said.
After investing.com’s fed rate monitor, 85% of traders expect the Federal Reserve to hike interest rates at its meeting later this year in December.
The constant expectations for a year-end rate hike prompted to trim the money-managers place their bets on the dollar as data showed that the net short positions on the greenback fell for the second week in a row.
Net short dollar positions against six major currencies, fell to $15.4 billion from $16.8 bn in the week, data from the CTFC showed on Friday.
The weakness of the Euro, meanwhile, added to the dollar strength, amid an increase in political tensions in the region, after the Spanish government said Catalan authorities must have an end, a bid for independence from Thursday.