Foreign exchange market. Asian session: the Australian and New Zealand dollar traded higher against the U.S. dollar due to the better-than-expected Chinese manufacturing data

Economic calendar (GMT0):

01:00    Australia                Consumer Inflation Expectation              May          +4.2%                 +4.4%

01:45    China                    HSBC Manufacturing PMI (Preliminary)    May           48.1      48.4       49.7

03:00    New Zealand         Expected Annual Inflation 2y from now  Quarter I +2.3%                 +2.4%

06:58    France                  Manufacturing PMI (Preliminary)              May           51.2      51.1       49.3

06:58    France                  Services PMI (Preliminary)                       May           50.4      50.3       49.2

07:28    Germany               Manufacturing PMI (Preliminary)             May           54.1      54.0       52.9

07:28    Germany               Services PMI (Preliminary)                      May           54.7      54.8       56.4

07:58    Eurozone              Manufacturing PMI (Preliminary)              May           53.4      53.2       52.5

07:58    Eurozone              Services PMI (Preliminary)                       May           53.1      53.0       53.5

08:30    United Kingdom     Business Investment, q/q                      Quarter I   +2.4%  +2.3%   +2.7%

08:30    United Kingdom     Business Investment, y/y                      Quarter I   +8.7%                +8.7%

08:30    United Kingdom     PSNB, bln                                              April          4.9         3.6        9.63

08:30    United Kingdom     GDP, q/q                                               Quarter I   +0.8%  +0.8%   +0.8%

08:30    United Kingdom     GDP, y/y                                               Quarter I   +3.1%  +3.1%   +3.1%

The U.S. dollar declined against the most major currencies after the release of Federal Reserve's meeting minutes on Wednesday. The Fed see the slow improvement in the economy and doesn’t see inflation pressure. It means that the U.S. central bank could left interest rates unchanged at record lows for some time after its asset purchase program ends.

The New Zealand dollar traded higher against the U.S. dollar. The Reserve Bank of New Zealand reported its annual inflation expectations increased to 2.4% in the first quarter, from 2.3% in the previous quarter.

The kiwi was also supported by the better-than-expected Chinese economic data. China’s HSBC manufacturing index (preliminary) climbed to 49.7 in May, up from 48.1 in April. Analysts had expected an increase to 48.4.

The Australian dollar increased against the U.S. dollar after the release of inflation expectations in Australia and Chinese manufacturing data. The inflation expectation for the next 12 months rose to 4.4% in April, from 4.2% in March. March’s figure was revised up from +2.4%.

The Japanese yen declined against the U.S. dollar after the after the release of the better-than-expected Chinese manufacturing data. The decreasing demand for safe-haven currency had a negative impact on the yen. No economic data was published in Japan.

EUR/USD: the currency pair declined to $1.3670

GBP/USD: the currency pair decreased to $1.6885

USD/JPY: the currency pair climbed to Y101.70

The most important news that are expected (GMT0):

09:00    Eurozone            European Parliamentary Elections                                                       

10:00    United Kingdom  CBI industrial order books balance  May       -1           4            

12:30    Canada               Retail Sales, m/m                           March   +0.5%  +0.2%  

12:30    Canada               Retail Sales ex Autos, m/m             March   +0.6%  +0.5%  

12:30    U.S.                    Initial Jobless Claims                        May       297        312        

13:43    U.S.                    Manufacturing PMI (Preliminary)     May       55.4      55.6      

14:00    U.S.                    Existing Home Sales                       April      4.59      4.71