Investing.com - The Australian dollar posted moderate gains in Asia early Tuesday with data on housing ahead as well as the minutes from the September policy review and the overall market awaiting policy reviews on Wednesday from the Bank of Japan and the U.S. Fed.
AUD/USD changed hands at 0.7540, up 0.08%, while USD/JPY traded at 101.81, down 0.12%.
Australia details the second quarter house price index with a 2.% gain seen quarter-on-quarter. At the same time, RBA meeting minutes are due. The central bank held its cash rate at a record low 1.50% at the previous meeting.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 95.79.
Overnight, the dollar extended losses against the other major currencies on Monday, as investors became more cautious ahead of the Federal Reserve and the Bank of Japan’s highly-anticipated policy meetings this week.
The greenback had strengthened after data on Friday showed that U.S. consumer prices rose 0.2% in August, compared to expectations for a 0.1% gain. Year-over-year, consumer prices increased 1.1%, above expectations for a gain of 1.0%.
The strong data sparked fresh speculation over a potential U.S. rate hike this month, ahead of the Fed’s policy statement due on Wednesday, while speculation for the BoJ centers on a possible rate cut further into negative territory. Investing.com's Fed Rate Monitor Tool showed investors see a 12% chance of a Fed hike in September.