Aussie holds Asia wins
Investing.com — The Aussie held gains in Asia on Monday despite weaker manufacturing PMI figures from China after a week-long holiday and the markets closed in Japan, Taiwan and South Korea.
AUD/USD traded 0.7775, up to 0.12%, while USD/JPY 112.60 traded, down 0.02%. GBP/USD traded up 0.14% to 1.3084.
In China, the Caixin services PMI 50.6 dipped in September, missing expected the 53.1 level, and down from 52.7 in August.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.03% to 93.59.
On Wednesday, Fed minutes, eyes for fresh clues on the timing of the next US interest rate increase. On Friday the US data on inflation and retail sales also in focus.
The markets are also eyeing a speech by ECB chief Mario Draghi’s clues of when the central bank move away from the ultra is policy-light.
Last week, the dollar lower turned against a basket of other major currencies on Friday amid fresh concerns about tensions with North Korea, the former profits from refused, after the U.S. employment report for September showed a higher-than-expected wage growth.
The dollar fell following reports on Friday that North Korea is preparing to test a long-range rocket, adding to the fears over a possible conflict in the region.
The dollar’s earlier rise, while the wage data from the US labour market report for September as potentially increasing inflation.
The US economy lost 33,000 jobs in September, the labor Department reported, ending seven years of job growth. But the decline was due to a slower setting, due to the effects of hurricane Irma and Harvey.
The unemployment rate fell to 4.2%, the lowest since 2001, and average hourly wages rose by 2.9% from a year earlier.
The upward trend in the wage-inflation reinforced expectations that the Federal Reserve Hiking interest rates in December.
Expectations that US rates will rise to support the dollar and US assets more attractive to yield-seeking investors.
Meanwhile, the pound fell to its lowest level in four weeks on Friday as concerns about divisions in the government on Brexit weighed.