Asian session: The dollar strengthened
Data:01:30 Australia Trade Balance (May) 2333M
01:30 Japan Labor Cash Earnings (YoY) (May) 1.1%
04:30 Australia RBA Interest Rate Decision (Jul 5) 4.75%
The dollar strengthened as Asian stocks snapped a five-day advance and metals retreated amid concern China will step up efforts to cool inflation. Wheat and rice led a rally in grains, while Australia’s currency sank.
The Aussie fell 0.6 percent after the central bank left interest rates unchanged. RBA said growth this year is “unlikely to be as strong as earlier forecast.”
U.S. factory orders likely increased 1 percent in May following a 1.2 percent decline the previous month, according to the median estimate of economists before the report today.
EUR/USD: the pair decreased below $1.4500.
GBP/USD: the pair decreased in $1.6000 area.
USD/JPY: the pair grown in Y81.10 area.
European data then rounds off at 0900GMT with EMU retail trade data for May.
The UK data focus for the week remains on the PMI surveys. Friday's manufacturing PMI release showed what had been the one bright spot in the UK economic outlook coming rapidly off the boil, while the construction sector PMI on Monday came in above consensus but failed toimpress the markets amid some hopes for a higher number cisrulating in the morning. Services PMI is out at 0828GMT on Tuesday, completing the set for June and is expected to show a slight decline to 53.5 from 53.8
US data starts at 1400GMT, US factory orders are expected to increase 1.0% in May on the already reported 1.9% increase in durable goods orders.