Asian session review: the US dollar rose against most currencies

During today's Asian trading, the US dollar rose against most major currencies, recovering from yesterday's fall on the back of US data. The ICE Dollar index, which shows the value of the US dollar against six major world currencies, rose by 0.25%.

The ISM index of business activity in the US manufacturing sector in April fell to 60.7 points compared with 64.7 points in March, data from the Institute for Supply Management (ISM), published on Monday, showed. This came as a surprise to analysts, who on average predicted an increase to 65 points.

Tomorrow, the ISM will release the April index of business activity in the US services sector, while on Friday, the US Department of Labor will release nonfarm payrolls data for April. According to some analysts, the strong indicators may support the dollar, as they will strengthen expectations of an increase in interest rates.

The head of the Fer, Jerome Powell, said yesterday that the growth prospects for the US economy have improved on the background of vaccination and thanks to budget incentives, but he stressed that the economic recovery is uneven.

The Australian dollar fell by 0.25% against the US dollar, which was partly due to the outcome of the Reserve Bank of Australia meeting. RBA kept the base rate at a record low of 0.1% per annum, as most experts expected. The Bank confirmed its intention to adhere to an ultra-soft monetary policy until at least 2024.