Investing.com - The Aussie was weaker ahead of a Reserve Bank of Australia review of interest rates and as traders await the Caixin manufacturing PMI survey on China.
AUD/USD traded at 0.7661, down 0.09%, while USD/JPY changed hands at 106.44, up 0.03%.
The RBA cash rate decision is close run for analysts, but most expect it to hold steady at a record low 2.0%. As well, the Caixin Manufacturing PMI for April, with 49.9 expected, and which will be closely watched.
At the weekend, the China April CFLP manufacturing index came in at 50.1, below expectations, but hanging onto expansion
territory. The CFLP service PMI eased to 53.5 from 53.8.
The semi-official manufacturing PMI from the China Federation of Logistics and Purchasing and National Bureau of Statistics slid from
the first over-50 reading in eight months in March.
Also in Asia come building approvals from Australia for April with a drop of 3.0% seen month-on-month, and private house approvals for March, after a fall of 1.2% in the previous month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 92.53. Elsewhere, John Williams, president of the San Francisco Fed, said that the long-term view on global interest rates remains below trend even after central banks start hiking.
Overnight, the dollar remained at eight-month lows against the other major currencies on Monday, after data showed that U.S. manufacturing activity expanded at a slower than expected rate in April adding to concerns over the strength of the economy.
The Institute for Supply Management said its index of manufacturing activity fell to 50.8 last month from March’s 51.8. Analysts had expected the factory index to tick down to 51.4.
The yen remained broadly supported after the Bank of Japan chose on last Thursday to hold its monetary policy, defying market expectations for additional monetary easing.
The decision came a day after the Federal Reserve kept interest rates on hold last week and indicated that any future interest rate hikes would be data dependent.