Forex - Aussie up in early Asia in thin data day, eyes on Fed

Investing.com - The Australian dollar gainedr in early Asia on Monday with investors looking ahead to remarks this week from the central bank governor.

Glenn Stevens is scheduled to speak on Tuesday.

AUD/USD traded at 0.7837, up 0.19%, while USD/JPY changed hands at 118.81, down 0.15%, ahead of retail sales on Tuesday.

EUR/USD was quoted at 1.0876, flat.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 97.02, down 0.05% in early Asia.

Last week, the dollar ended the week lower against the other major currencies on Friday, the second consecutive weekly decline as fresh economic data underlined concerns that the recovery is losing momentum.

The Commerce Department reported Friday that orders for durable goods, excluding aircraft, fell 0.5% in March, after a downwardly revised 2.2% drop in February.

The headline figure rose 4.0%, beating expectations for a 0.6% gain, but investors focused on underlying weakness in the report.

The data came after recent weak reports on home sales, retail sales and industrial production, adding to signs of a slowdown in economic growth since the start of the year.

The weak data added to pressure on the dollar which has been hit as investors pushed back expectations on the timing of an initial rate hike by the Federal Reserve.

The single currency was held in check as concerns over Greece’s debt negotiations continued. Euro area finance ministers said Friday that Greece must present a full economic reform plan by early May in order to access any further funding.

In the week ahead investors will be looking to Wednesday’s Fed statement for clues on the possible timing of a rate increase. Investors will also be focusing on Wednesday’s preliminary reading on U.S. first quarter growth as well as reports on inflation, consumer confidence and manufacturing.

Central bank meetings in Japan and New Zealand will also be in focus, as will Thursday's preliminary data on euro zone inflation.

On Monday, markets in New Zealand will remain closed for a holiday.

The U.K. is to release private sector data on industrial order expectations.