Foreign exchange market. Asian session: dollar declined against the U.S. dollar due to the Reserve Bank of Australia (RBA) monetary policy statement and the weak Chinese inflation, but later recovered its losses

Economic calendar (GMT0):

01:30    Australia              RBA Monetary Policy Statement                                                          

01:30    China                  PPI y/y                                         April     -2.3%    -1.8%     -2.0%

01:30    China                  CPI y/y                                         April     +2.4%   +2.1%   +1.8%

05:00    Japan                  Leading Economic Index              March   108.7                   106.5

05:00    Japan                  Coincident Index                          March   112.9                   114.0

06:00    Germany              Current Account                         March   13.9                      19.5

06:00    Germany              Trade Balance                              March   15.8        16.9      14.8

08:30    United Kingdom    Industrial Production (MoM)         March   +0.9%    -0.1%    -0.1%

08:30    United Kingdom    Industrial Production (YoY)          March   +2.7%                 +2.3%

08:30    United Kingdom    Manufacturing Production (MoM) March   +1.0%   +0.3%   +0.5%

08:30    United Kingdom    Manufacturing Production (YoY)  March   +3.8%                +3.3%

08:30    United Kingdom    Trade in goods                            March    -9.7        -9.0        -8.5

The U.S. dollar traded higher against the most major currencies. The U.S. currency was supported by the yesterday’s ECB President Mario Draghi comments that the ECB could ease monetary policy in June to tackle low inflation, and the better-than-expected number of initial jobless claims, published on Thursday.

The New Zealand dollar traded lower against the U.S. dollar due to the weak Chinese inflation, but later recovered its losses. China's consumer price index (CPI) increased 1.8% year-on-year in April, the lowest inflation rate in 18 months. Analysts had expected a 2.1% gain. China’s producer price index (PPI) declined 2.0% year-on-year in April. Analysts had forecasted a decline of 1.8%. No economic data was published in New Zealand.

The Australian dollar declined against the U.S. dollar due to the Reserve Bank of Australia (RBA) monetary policy statement and the weak Chinese inflation, but later recovered its losses. The RBA said in its statement that the current accommodative monetary policy is appropriate for some time.

The RBA increased its growth forecast for the current quarter from 2.75% to 3%, and lowered its inflation outlook to a 2.75% increase year-on-year, from 3.00% in its February statement. 

The Japanese yen traded little changed against the U.S. dollar. Japan's leading economic index declined to 106.5 in March, from 108.7 in February. February's figure was revised down from 113.5.

Japan's coincident index was up to 114.0 in March, from 112.9 in February. February's figure was revised down from 113.0.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair declined to $1.6915

USD/JPY: the currency pair climbed to Y101.75

The most important news that are expected (GMT0):

12:30    Canada                Employment                   April      42.9      14.9      

12:30    Canada                Unemployment rate        April      6.9%     6.9%     

14:00    United Kingdom    NIESR GDP Estimate      April      +0.9%                 

14:00    U.S.                      JOLTs Job Openings      April      4173     4210     

22:00    U.S.                      FOMC Member Narayana Kocherlakota