Investing.com - The yen gained slightly in early Asia on Monday ahead of a busy week of events to catch market attention, including remarks from top central bankers and the first glimpse of the U.S. presidential contenders head-to-head.
USD/JPY changed hands at 100.94, down 0.03%, while AUD/USD traded down 0.16% to 0.7610.
In New Zealand the trade balance widened to a deficit of NZ$3.1 billion in August year-on-year, compared to a gap of NZ$2.7 billion expected. NZD/USD traded at 0.7229, down 0.21%, after the data.
The U.S. dollar index, which measures the greenback's value against a basket of six major currencies, was last quoted at 95.41.
In the coming week, Federal Reserve Chair Janet Yellen is due to speak amid ongoing uncertainty over the timing of the next U.S. rate hike. As well, a pair of speeches from European Central Bank President Mario Draghi will be in focus for fresh hints on whether the ECB will step up monetary stimulus in the coming months to boost inflation and prop up the economy.
In addition, remarks by Bank of Japan Governor Haruhiko Kuroda will be eyed in wake of last week's decision by the central bank to modify its policy framework. The Japanese central bank refrained from cutting interest rates further into negative territory or expanding its asset purchase program at its monetary policy meeting, instead switching to targeting interest rates as a way to reach its inflation target.
Another big event for markets could be the first U.S. presidential debate on Monday between Democratic nominee Hillary Clinton and Republican hopeful Donald Trump.
Last week, the U.S. dollar recovered slightly against a basket of major currencies on Friday, but remained near a two-week low as traders continued to digest policy announcements from the Federal Reserve and the Bank of Japan.
The Fed left interest rates unchanged at the conclusion of its policy meeting on Wednesday, but hinted that a hike could come in December if the job market continued to improve.
At the same time, the U.S. central bank also cut the number of rate hikes it expects next year and in 2018, according to the median projection of forecasts released with its post-meeting statement.
The Fed has policy meetings scheduled in early November and mid-December. Economists believe policymakers would avoid a rate hike in November in part because the meeting falls just days before the U.S. presidential election. Markets are currently pricing in a 12.4% chance of a rate hike at November's meeting, according to Investing.com's Fed Rate Monitor Tool.
As well, U.K. Foreign Secretary Boris Johnson said he expects his country will start formal Brexit negotiations early next year. The comments suggest that Britain could be on a somewhat faster track to an EU divorce than what markets expect.