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Forex - Aussie weaker after mixed data, private sector credit up

Published 30/11/2015, 11:59 am
Aussie weaker after mixed data
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Investing.com - The Aussie fell in Asia on Monday after mixed data on the state of demand in the economy, though a slightly upbeat signal was seen in private sector credit.

AUD/USD traded at 0.7175, down 0.22%, while USD/JPY changed hands at 122.78, down 0.02%, after strong retail sales offset weaker industrial output.

Australia's business inventories for the third quarter, rose 0.1% as expected month-on-month, while company gross operating profits gained 1.3%, better than the 1.0% seen quarter-on-quarter, and housing credit for October rose 0.6% as expected and private sector credit rose 0.7%, better than the 0.6% month-on-month gain seen.

Also in Australia, the MI inflation gauge showed a reading of 0.1%.

Earlier, in Japan, industrial production for October rose 1.4% month-on-month, below the 1.9% gain seen, while retail sales jumped 1.8%, well above the 0.8% year-on-year increase expected.

New Zealand business confidence for November compiled by ANZ Bank came in at 14.6%, down from the 15% seen, but well above the 10.5% in October.

In the week ahead, investors will focus on Friday’s U.S. nonfarm payrolls report for November, the last jobs report before the Federal Reserve decides on interest rates at its December 15-16 meeting.

The outcome of Thursday’s European Central Bank meeting will also be in focus amid speculation the central bank could ramp up its monetary stimulus program.

On Monday in the euro area, Germany is to release preliminary data on inflation as well as a report on retail sales.

The U.S. is to publish a report on manufacturing activity in the Chicago region as well as private sector data on pending home sales.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was quoted up 0.17% at 100.22.

Last week, the U.S. dollar rose to a more than eight-month peak against its major counterparts on Friday, as demand for the greenback remained underpinned amid growing confidence the Federal Reserve will raise interest rates when in meets next month.

The greenback remained broadly supported after a string of upbeat U.S. data released over the week added to expectations that the Federal Reserve will raise interest rates next month.

Over the last few weeks, ECB president Mario Draghi has sent strong indications that the central bank could increase the scope of its €60 billion a month quantitative easing program at the December meeting.

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