SYDNEY, Australia – Predictions for the start of this trading week is a more subdued open, which was confirmed by the nearly flat open for the US dollar during the Monday trading session in the Asian market.
The US dollar was very little changed compared to its previous close on Friday the previous week, while the Australian dollar recorded gains ahead of the scheduled release for the latest job data of the country.
Early in the Asian trading session on Monday, the US dollar index was seen trading mostly unchanged at 97.365points. The mostly flat open for the dollar came amid Friday’s release of the figures by the Commerce Department. The published data showed the housing in the US for December was showing better figures that the estimated 1.38 million by economists. Further, the latest housing numbers recorded the biggest gain for the country after almost 13 years.
The retail sales of the US have also shown a significant increase. Further, the gauge of the activity in the manufacturing sector rebounded and is well on its way to reach its highest value after eight months.
The latest data, which showed positive growth for the US, has calmed the market and reduced the chances for a possible rate cut from the Federal Reserve during its upcoming meeting scheduled later in January.
Meanwhile, the Australian dollar significantly increased during the market open in Asia on Monday. The Aussie dollar recorded around a 0.2% increase against the US dollar early on trade, adding around 0.6886 from its previous market close. The gains for the AUD/USD pair came as market players keenly await on the latest jobs data for the country, which is scheduled for release on Tuesday.
Furthermore, the Reserve Bank of Australia is scheduled for a meeting next month. An announcement of more market-moving stimulus is expected after the meeting following last year’s rate cuts amid the widespread forest fire.
Elsewhere, other currencies also rose during Monday’s trading session against the US dollar.
New Zealand edged higher, tracking around a 0.2% gain against the US dollar, adding about 0.6620 points.
The Chinese yuan also advanced during the Asian market open on Monday, adding 0.2% against the US dollar. The increase came after the strong economic growth figures of the country published last week. Based on the releases from China, its gross domestic product (GDP) has increased by 6% during the fourth quarter last year. But despite the expected figures, which is in line with the expectations of economists, the latest GDP of China marks its lowest growth since three decades ago.
Meanwhile, the USD remains nearly steady at 110.17 points against the Japanese yen.