The dollar traded mixed on Monday (Mar 28) as investors awaited Federal Reserve Chair Janet Yellen's speech on monetary policy, hoping to glean insight into the path of interest rate increases.
Investors were expected to focus on Yellen's remarks on Tuesday to the Economic Club of New York to see if she sheds light on when the central bank will raise rates for a second time.
U.S. consumer spending barely rose in February and inflation retreated, suggesting the Federal Reserve could remain cautious about raising interest rates this year even as the labor market rapidly tightens.
Monday's report from the Commerce Department also showed consumer spending in January was not as strong as previously reported. That, together with other data showing a widening in the goods trade deficit in February, indicated economic growth remained sluggish in the first quarter.
Consumer spending edged up 0.1 percent as households cut back on goods purchases after a downwardly revised 0.1 percent gain in January. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, was previously reported to have increased 0.5 percent in January.
When adjusted for inflation, consumer spending rose 0.2 percent. Inflation-adjusted consumer spending for January was revised down to show it unchanged rather than the 0.4 percent rise that was previously reported.
The National Association of Realtors said its pending home sales index rose 3.5 percent to 109.1 last month, the highest level in seven months. January's reading was revised to show a 3.0 percent decline, which was deeper than initially reported.
Oil prices fell in early Asian trade on Tuesday as concerns mount that a rally since January is fizzling out, while analysts forecast another rise to record levels for U.S. crude stockpiles.
U.S. oil was down 17 cents at $39.22 a barrel at 0055 GMT, after finishing down 7 cents at $39.39, the previous session.
Brent fell 18 cents to $40.09. On Monday it settled down 17 cents at $40.27 a barrel.
Reference: Reuters, AU.News.Yahoo, ChannelNewsAsia
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