Australian Dollar & Yen frailer in Asia as Fed rate hike is expected

On Monday, the aussie and yen got weaker with little regional data in focus and high expectations of a Federal Reserve rate boost in Asia this month.

The currency pair AUD/USD was traded at 0.7334 with a slip of 0.10%, where as USD/JPY was at 123.22 with a hike of 0.09%.

In Australia, the AI/HIA November construction index came down 1.4 points to 50.7 as new orders turned down in all groups.

In the coming days of this week, investors will be watching out to U.S. data to be released on Friday on retail sales and inflation as recent indicators on the state of the U.S. economy.

Other important events to look out will be Central bank meetings in the U.K., Switzerland and New Zealand.

Mark Carney, Governor of Bank of England, will testify on Economic and Monetary Affairs before the European Parliament Committee in Brussels.

The Swiss National Bank will publish data on its foreign currency reserves. 

The U.S. dollar index, which is the measure of the currencies’ strength against a trade-weighted basket of six major currencies, was at 98.30 with an increment of 0.03%.

Since last week, the dollar got appreciated against euro and yen after a productive report of U.S. jobs for November supported expectations that the Fed will hike interest rates in this month.

According to the Labor Department the U.S. economy added 2, 11,000 more jobs last month.

Higher U.S. interest rates will make the dollar more attractive to investors.