Australian Dollar Little Changed, Data Watch

 
   By James Glynn 
 

        SYDNEY--The Australian dollar was stuck fast to recent ranges in Asia Monday, awaiting fresh developments on attempts to reform Greece and keep it in the euro zone, with key data on investment due locally on Thursday.
        At 0520 GMT, the Australian dollar was changing hands at US$0.7838, up from US$0.7806 late Friday.
        The fourth quarter business investment data is expected to confirm Australia's economy will struggle to produce meaningful economic growth in coming quarter as a mining and gas investment boom flames out.
        "Investment plans for 2015-16 are likely to look ugly, as we expect them to be driven by mining investment falling at a faster rate that year," said Kieran Davies, chief economists at Barclays, Australia.
        With economic growth forecast to be soft, financial markets are likely to continue to price in a further cut to interest rates in coming months.
        Interest rate swap markets currently price a 50% chance the Reserve Bank of Australia will cut its cash rate to 2.00% at its March 3 policy meeting.
        Elsewhere, National Australia Bank said Tuesday it no longer feels the Australian dollar is overvalued, and said the RBA's long-held mantra that it is too high "looks hollow."
        "On a variety of valuation metrics, the Australian dollar is now about where it should be," said Ray Attrill, NAB's head of currency strategy.
        The market consensus is that the Australian dollar is likely to fall further over time as the RBA cut interest rates and the U.S. Federal Reserve moves to raise the Fed funds rate.
        The currency has fallen 18% since mid-2014.
        -Write to James Glynn at james.glynn@wsj.com
        (END) Dow Jones Newswires

        February 23, 2015 01:34 ET (06:34 GMT)

#FX
#Forex
#AustralianDollar
#DataWatch