Investing.com – The Aussie held steady in Asia on Tuesday a few ticks above 0.80 to the dollar ahead of a central bank rate review.
Ahead, the Caixin manufacturing PMI for July is due with an expected reading of 50.4. On Monday. the CFLP manufacturing PMI reached 51.4, a trade below expected, but still in expansion, while a 54.5 for the services PMI also was seen as steady. Any level above 50 denotes expansion.
Later, the August RBA interest rate decision will set the tone for regional currencies with investors widely expecting the record-low 1.50% rate to hold steady.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.57% to 92.67. AUD/USD was flat at 80.03, while USD/JPY changed hands at 110.33, up 0.37%.
Overnight, the dollar languished at more than 14-month lows against a basket of global currencies on Monday, as market participants continued to bet against the greenback, after a mixed pair of economic reports weighed on sentiment.
Timid economic activity continued to add to dollar woes, as investors mulled over economic data showing a dip in manufacturing activity while pending home sales data topped expectations.
The Chicago business barometer, a closely-watched indicator by the Institute for Supply Management (ISM) slipped to 58.9 in July from a three-year high of 65.7 in June, MNI indicators showed on Monday.
Any reading over 50 indicates improving conditions.
In a separate report, the National Association of Realtors said on Monday, pending home sales, or signed contracts to buy previously owned homes, rose 1.5% in June from the previous month.
The reports come amid growing investor expectation the greenback would continue to lose ground against its rivals, in the wake of data last week showing speculators increased their short bets against the U.S. dollar.
The value of net short bets against the dollar rose to $3.92 billion in the week ending July 25, according to calculations by Reuters and Commodity Futures Trading Commission data released on Friday.
The pound and euro were the main beneficiaries of selling pressure in the greenback, as both currencies traded close to session highs.