Asian session: The dollar rallied for a second day from a 10-week low against the yen

01:30 Japan Labor Cash Earnings, YoY March +0.7% +0.4% +1.3%

02:30 China HSBC Manufacturing PMI (finally) April 48.3 49.1 49.3

The dollar rallied for a second day from a 10-week low against the yen before a private report today forecast to show U.S. companies added workers in April, easing speculation the Federal Reserve will add to stimulus. The greenback was higher against the euro after three voting members of the Federal Open Market Committee said they don’t see a need to ease policy further as the economy maintains its expansion. U.S. companies probably added 170,000 workers in April after a 209,000 gain in the previous month, according to the median estimate of economists in a Bloomberg News survey before ADP Employer Services releases its workforce figures today.

The yen extended declines against the dollar and euro after Tom Byrne, senior vice president at Moody’s, commented on the possible effect Ozawa could have on Japan’s tax negotiations. An increase in the country’s consumption tax “is a significant issue that hasn’t been resolved yet,” Byrne told reporters in Manila today. “Ozawa’s role in the debate, there could be implications there, but right now we don’t see anything.”

Demand for the 17-nation euro was limited before data today that may show the region’s manufacturing weakened last month and before the European Central Bank meets on policy tomorrow. Economists predicted that Markit Economics would confirm its gauge of euro-area manufacturing dropped to 46 in April, an almost three-year low. The March reading was 47.7. The ECB will keep the bank’s benchmark interest rate at a record-low 1 percent at tomorrow’s meeting in Barcelona, according to all economists surveyed by Bloomberg.

EUR/USD: during the Asian session the pair traded in a range $1.3205-$1.3240.

GBP/USD: during the Asian session the pair holds in a range $1.6215-$ 1.6235.

USD/JPY: during the Asian session the pair rose.

European data for Wednesday starts at 0600GMT with the ILO measure of Germany employment data. This morning also sees manufacturing PMI releases from Italy at 0743GMT and the final figures from France at 0748GMT, Germany at 0753GMT and the main EMU number at 0758GMT, The preliminary figures for France, Germany and the EMU data were 47.3, 46.3 and 46.0 respectively. UK data at 0830GMT sees the Bankstats, M4, Lending and CML Mortgage Lending data as well as the Markit/CIPS Construction PMI data. US data starts at 1100GMT with the MBA weekly mortgage applications data. At 1200GMT, Federal Reserve Governor Daniel Tarullo speaks to the Council on Foreign Relations, in New York. US ADP National Employment Report is due at 1215GMT. At 1400GMT, factory new orders are forecast to fall 1.6% in March after rising in February. Durable goods orders were already reported down 4.2% in March, while nondurables orders are expected to rise slightly on higher food and energy prices. At 1430GMT, the EIA eekly crude oil stocks data is due. Then, at 1630GMT, Richmond Fed President Jeffrey Lacker speaks to the Economics Club of Hampton Roads Economic Conference sponsored by Old Dominion University's College of Business and Public Administration on the "Economic Outlook, May 2012', in Richmond.