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01:30 Australia Gross Domestic Product (QoQ)
Quarter I +0.6% +0.8% +0.6%
01:30 Australia Gross Domestic Product (YoY) Quarter I +3.1% +2.7% +2.5%
01:45 China HSBC Services PMI May 51.1 51.2
Demand for the euro was limited before data forecast to confirm a sixth straight quarter of contraction in the region's economy. Preliminary figures will probably show that gross domestic product in the 17-nation euro zone shrank 0.2 percent in the three-months ended March 31, after a 0.6 percent decline in the fourth quarter, economists predicted before the release today.
The dollar held above 100 yen for a second day, after rallying from the lowest in almost a month, before U.S. employment data that may add to the case for the Federal Reserve to slow stimulus. The Labor Department reported last month that nonfarm payrolls swelled by 165,000 jobs in April, more than forecast, and the unemployment rate unexpectedly fell to 7.5 percent. It will probably say June 7 that employers added 167,000 workers in May, economists forecast.
Kansas City Fed President Esther George yesterday urged a reduction in the central bank's bond-buying program, known as quantitative easing, as growth quickens. "In light of improving economic conditions, I support slowing the pace of asset purchases as an appropriate next step for monetary policy," Kansas City Fed President George said in the text of her speech. "Waiting too long to acknowledge the economy's progress and prepare markets for more-normal policy settings carries no less risk than tightening too soon," she said.
San Francisco Fed President John Williams said a "modest adjustment downward" in purchases is possible "as early as this summer."
Australia's dollar fell after the nation's economy grew at the slowest pace in almost two years. In Australia, GDP (AUNAGDPC) grew at a 2.5 percent annualized rate in the first quarter, the slowest pace since the three months ended June 30, 2011, a statistics bureau report released in Sydney showed. The result was less than the 2.7 percent increase expected by economists in a Bloomberg survey and revised 3.2 percent growth in the fourth quarter.
EUR / USD: during the Asian session the pair rose to $ 1.3095
GBP / USD: during the Asian session the pair traded in the range of $ 1.5290-20
USD / JPY: during the Asian session the pair traded in the range of Y100.00-45
Eurozone services PMI provides the morning interest, beginning with Spain at 0713GMT, with Eurozone due to finish the set at 0758GMT. Eurozone retail sales and GDP follow at 0900GMT. US ADP opens afternoon trade at 1215GMT, followed by factory orders and non-mfg ISM at 1400GMT.
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