© Reuters. Aussie gains in Asia
Investing.com — The Aussie edges higher in early Asia on Thursday ahead of China GDP, and other economic data and the tone.
AUD/USD 0.7848, up to 0.03%, with China a top target of trade for Australian raw material exports. USD/JPY changed hands at 112.94, flat. EUR/USD tarded in the 1.1790, up to 0.03%.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was quoted last down 0.06% to 93.30.
In Japan, the trade balance is seen due to a ¥560 billion surplus for September. Australia reports jobs data added 15,000 workers, employment change is expected and a steady unemployment rate of 5.6%.
In China, the third quarter GDP is expected to show a gain of 1.7% on quarter and rise by 6.8% year-on-year, while industrial production is expected to post a 6.2% increase in September, and fixed investment is still 7.7%. Retail sales in China are expected to be 10.2%
The dollar fell below the income threshold versus a basket of major currencies, after data continued showed weakness in the housing sector, but the losses were limited by gains in U.S. treasury yields on speculation about the next Fed Chairman.
The dollar was on the way to the end of the longest daily winning streak in almost three weeks on the back of weaker-than-expected housing data.
The Commerce Department said on Tuesday the US house-building fell by 4.7% to a seasonally adjusted annual rate of 1.127 million units in September, well below economists ‘ estimates of 0.5% drop.
The report also highlighted a sharp 4.5% decline in building permits to a height of 1,215 million units. This was below estimates of a fall of 1.245 million units.
A sharp rise in US Treasury yields, however, limited downside momentum in the US to install the dollar as speculation that the next Fed Chairman is Yellen, the adoption of a more hawkish stance on monetary policy than current Fed Chairman, Janet.
“Speculation about the identity of the next Fed Chairman will, in turn, the prospects for the dollar rather positive, with a relatively hawkish (certainly more than Janet Yellen) John Taylor is an increasing possibility. him to help you to drive the 2-year Treasury yields higher and the dollar stronger.»
The dollar could come under further pressure in the session, as investors await the Federal Reserve’s Beige Book, a report on the economic and inflationary conditions in the twelve Federal Reserve districts.
The Inflation was the Federal Reserve’s target of 2% increase in the uncertainty about the pace of future rising interest rates.
The euro and the pound were the main beneficiaries of the dollar weakness supported by investor expectations that the European Central Bank and the Bank of England’s tightening of monetary policy rather sooner than later.