Investing.com - The Japanese yen weakened in early trade on Monday in Asia and the Australian dollar too fell ahead of revised second quarter GDP data due from Japan and trade data from China.
USD/JPY traded at 105.18, up 0.09%, while AUD/USD traded at 0.9368, down 0.10%.
Japan's second quarter revised GDP and August bank lending data are due at 0850 Tokyo (2350 GMT).
The economic contraction in the second quarter is expected to be revised down slightly to minus 1.8% on quarter, or an annualized drop of 7.0% from the initial estimate of a 1.7% fall, as business investment appears to be weaker than previously reported. At the same time, the July current account balance is due.
Also due is China's August trade data, though markets are shut for a holiday. Economists expect August exports to have risen 8.0% year-on-year, while imports are seen up 1.7%.
Last week, the dollar slid against the other major currencies on Friday, reversing a rally earlier in the week after data showed that the U.S. economy added jobs at the slowest monthly rate this year in August.
The Labor Department reported that that U.S. economy added 142,000 jobs last month, disappointing expectations for jobs growth of 225,000. July’s figure was revised up to 212,000.
The unemployment rate ticked down to 6.1% from 6.2% in July.
The report eased concerns that the recovery in the U.S. economy is progressing so rapidly that the Federal Reserve will be forced to raise rates sooner prevent the economy from overheating.
The dollar however remained supported after other economic reports earlier in the week indicated that the U.S. recovery is still on track. Data on Tuesday showed that the country’s manufacturing sector expanded at the fastest rate in more than three years in August.
The Fed is expected to wind up its asset purchase program in October and to start raising interest rates sometime in mid-2015. In contrast, the European and Japanese central banks look likely to stick to a looser monetary policy stance.
The euro tumbled to a 14-month low against the dollar on Thursday after the European Central Bank cut rates to record lows across the euro zone and announced fresh stimulus measures in an attempt to shore up slowing growth and inflation in the region.
In the week ahead, investors will be looking to Friday’s U.S. data on retail sales and consumer sentiment for further indications on the strength of the economic recovery.
Testimony on inflation by Bank of England officials on Wednesday and the outcome of a rate review by New Zealand’s central bank on Thursday will also be in focus.
On Monday, Germany is to release a report on the trade balance. Elsewhere in Europe, Switzerland is to produce data on consumer price inflation, which accounts for a majority of overall inflation.
Later Monday, Canada is to release data on building permits.