The Australian dollar fell slightly on Wednesday ahead of Australia’s consumer sentiment survey and CPI data.
At 1030 local time (2330 GMT) Westpac-Melbourne Institute will release a consumer sentiment survey for January. The December index figure came in at 105, showing a slight dip.
The consumer sentiment survey, closely watched by the Reserve Bank of Australia, will be followed by consumer prices for the fourth quarter in Australia at 1130 local time (0030 GMT). Expectations are for a 0.5% quarterly increase and a year-on-year figure of 2.5%.
At 0945 local time (0145 GMT) the flash HSBC China purchasing manager''s index for January comes out with a previous final reading of 50.5 for December.
The Bank of Japan is scheduled to detail the results of its latest monetary policy review at 1230 local time (0330 GMT) followed by a press conference by Governor Haruhiko Kuroda at 1530 local time (0630 GMT).
AUD/USD traded down 0.01% at 0.8804, USD/JPY traded flat at 104.28, and NZD/USD traded down 0.02% to 0.8313.
On Tuesday the U.S. dollar traded mixed to higher against most major currencies after the International Monetary Fund hiked its 2014 global growth forecast, while expectations for further cuts to Federal Reserve stimulus programs this month also bolstered the greenback.
In revisions to its World Economic Outlook report published on Tuesday the IMF said it expects the global economy to grow by 3.7% in 2014, up from an October forecast of 3.6% growth.
The news fueled expectations for central banks to wind down stimulus programs such as bond purchases going forward, the Federal Reserve especially, as the multilateral lending institution predicted the U.S. economy to expand 2.8%, up from an October forecast of 2.6%.
Many market participants expect the Fed to trim its quantitative easing program to USD65 billion from the current USD75 billion at its next policy meeting on Jan. 29.
Central bank bond purchases aim to prop up the economy by suppressing long-term interest rates, thus weakening the dollar as a side effect as investors flock to asset classes like stock
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