AUD

Australia’s dollar fell against its 16 major peers after
data showed the nation’s consumer prices increased less than economists
forecast.

The Reserve Bank of Australia said this month inflation is
expected to stay consistent with its target over the next two years. It targets
average annual inflation of 2% to 3%

AUD

Australia’s dollar fell against its 16 major peers after
data showed the nation’s consumer prices increased less than economists
forecast.

The Reserve Bank of Australia said this month inflation is
expected to stay consistent with its target over the next two years. It targets
average annual inflation of 2% to 3%

China’s yuan touched the weakest level in 16 months,
while the Australian dollar headed for its biggest drop in more than a month
after a private report signalled manufacturing contracted in the world’s
second-biggest economy.

USD

The dollar was near a two-week high against the yen
before U.S. data on manufacturing and new home sales that may add to signs the
economy is improving. The central banks in the U.S. and Japan will set policy
next week.

GBP

The pound rose to the strongest level in seven weeks
against the euro due to speculation the Bank of England minutes tomorrow will
show policy makers are moving closer to raising borrowing costs.

Sterling approached the highest in more than four years
versus the dollar due to signs Britain’s economy will continue to expand at a
faster pace than previously expected.

A report last week showed the unemployment rate fell to
6.9%, the lowest in over four years. Carney previously said 7% unemployment
would be a threshold for considering an interest rate increase.

INR

India’s rupee fell to a four-week low on speculation
importers stepped up dollar purchases to meet month end payments.

The rupee fell for a second day as exchange data showed
foreign funds sold a net $1.2 billion of Indian bonds this month through
Monday.

The rupee’s losses will probably bottom out as exporters
send back overseas income to take advantage of a favourable exchange rate,
boosting the value of overseas earnings in local terms.

EUR

Both the services and manufacturing sectors from both
Germany and mainland Europe both expanded beyond market expectations causing
the euro to make gains across the board this morning.

Key Announcements: 

14.45pm – USD – Markit Manufacturing PMI (Apr): Expected to
increase to 56.

15.00pm – USD – New Home Sales (Mar): Expected to increase
to 450,000.