Investing.com - The Aussie ticked lower after remarks from the central bank chief on Tuesday and ahead of minutes from the October policy meeting.
Australia's central bank will release the minutes of the October meeting later on Tuesday at which it held rates steady at a record low 1.50%.
AUD/USD traded at 0.7625, down 0.07%, while USD/JPY changed hands at 103.88, down 0.02%.
Earlier, Reserve Bank of Australia Governor Philip Lowe said Tuesday third quarter inflation figures will be an important indication of inflation expectations, which have clearly declined recently and there is a need to guard against them falling further.
"Of course, one of the key influences on inflation expectations is the actual outcomes for inflation. We will get an important update next week with the release of the September quarter CPI," Lowe said at a conference in Sydney. CPI data is due Oct. 26.
Elsewhere, third quarter consumer prices rose 0.2% quarter-on-quarter in New Zealand, more than the flat outcome seen, while the year-on-year pace showed a 0.2% gain, higher than the 0.1% seen. NZD/USD traded at 0.7161, up 0.38%, after the data. RBNZ Assistant Gov. John McDermott last week said the bank expected this quarterly CPI to show inflation bottoming out and it would rise from here. The RBNZ will next review the official cash rate Nov. 10 and expectations are for a 25 basis points cut to 1.75%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 97.86.
Overnight, the dollar remained lower against the other major currencies on Monday, after the release of downbeat economic reports from the U.S. dampened optimism over the strength of the economy, although the greenback still remained within close distance of a seven-month peak.
The Federal Reserve of New York said its Empire State manufacturing index fell to -6.80 in October from -1.99 the previous month. Analysts had expected the index to rise to 1.00 this month.
A separate report showed that U.S. industrial production increased by 0.1% last month, below expectations for a gain of 0.2%.
However, manufacturing production increased by 0.2% last month, compared to forecasts for a 0.1% rise.
Earlier Monday, final data showed that the euro zone consumer price index rose 0.4% in September, in line with expectations. Year-on-year, consumer prices gained 0.4% last month.