* G3 currencies becalmed in absence of any major economic
* Survey on China's manufacturing sector key for risk
* Aussie dollar eyes inflation data at home
By Ian Chua
SYDNEY, April 23 The world's major currencies
started trade on Wednesday in Asia on familiar ground after an
uninspired session that kept the dollar, euro and yen locked in
The euro last traded at $1.3806, having drifted up
from a near two-week low of $1.3785. Against the yen, the common
currency firmed a touch to 141.65, while the dollar
was flat at 102.60.
The dollar index on Tuesday traded within the
previous day's range, suggesting a lack of conviction. It last
stood at 79.891.
There was no major economic data out of Europe, while in the
United States, home resales fell to their lowest in over a year
in March although there were signs the downtrend may be coming
to an end.
In Asia much will depend on a survey of China's
manufacturing activity due at 0045 GMT. Any disappointment will
add to worries about the country's economic slowdown and sour
risk sentiment, perhaps to the benefit of the yen.
The Australian dollar, which gained a modest 0.4 percent
against the greenback, was the clear outperformer as investors
positioned for local inflation data due out at 0030 GMT.
It bought $0.9363, about half a U.S. cent above
this week's trough.
The headline inflation number is expected to come in above
the central bank's 2-3 percent target for the first time in over
two years, while underlying inflation is likely to challenge the
top-end of the range.
"The consensus is for the trimmed and weighted means to
increase to 2.9 percent, the first time since 2010 that either
series would be threatening the upper-end of the RBA's 2-3
percent target range," JPMorgan analysts wrote in a note to
"As such it should serve to reinforce the RBA's more relaxed
attitude of late towards the level of the currency, which has
been a key ingredient in the AUD's recovery. We continue to
recommend a tactical long in AUD/NZD."
Analysts said a stronger-than-expected outcome could also
prompt the market to bring forward the risk of an interest rate
hike. Bank bill futures <0#YIB:> currently imply a one-in-three
chance of a move by December.
Demand for the higher-yielding Aussie and its kiwi peer were
further supported by low market volatility as well as gains in
global equities. U.S. stocks ended higher for a sixth
session thanks in part to a host of solid earnings report.
(Editing by Shri Navaratnam)