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Forex - Aussie weaker ahead of NAB survey, Bank of England ahead

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Investing.com -

Investing.com - The Australian dollar was slightly weaker in early trade on Monday with a private survey ahead, but little else in the way of data though rate cuts by the People's Bank of China at the weekend continues a tone of easier monetary policy in the region.

AUD/USD traded at 0.7923, down 0.09%, while USD/JPY changed hands at 119.82. GBP/USD traded at 1.5443, down 0.08%.

The 25 basis point cuts were announced Sunday and bring the one-year lending rate down to 5.1% and the equivalent deposit rate to 2.25%. Economists inside and outside the government believe Chinese interest rates are structurally too high and ill-matched to current economic conditions and should be brought lower.

National Australia Bank is to release private sector data on business confidence and conditions.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was quoted up 0.03% to 94.93 in early Asia.

Last week, the dollar gained against the euro on Friday after the latest U.S. employment report showed that job creation rebounded in April, but a sharp downward revision to the previous month's figure checked gains against the other major currencies.

The Labor Department reported that the U.S. economy added 223,000 jobs in April, just shy of economists forecast for 224,000. The unemployment rate ticked down from 5.5% to 5.4%, the lowest since May 2008.

But March's payrolls report was revised to show that only 85,000 jobs were created, the fewest since June 2012.

The data did little to alter expectations that the Federal Reserve will keep rates on hold at current record lows until later in the year.

In the week ahead investors will be turning their attention to U.S. data on retail sales and consumer sentiment for fresh indications on the strength of the economic recovery.

The euro zone is to release what will be closely watched preliminary estimates on first quarter growth and the latest U.K. jobs report will also be in focus.

On Monday,the Bank of England is to announce its monetary policy decision.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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