Asian session: The Australian and New Zealand dollars fell ahead of U.S. figures tomorrow

05:00 Japan Consumer Confidence February 40.0 40.8 39.5

The Australian and New Zealand dollars fell ahead of U.S. figures tomorrow forecast to show retail sales rose, reducing the case for additional Federal Reserve stimulus measures.  Retail sales in the U.S. probably increased 1.1 percent in February, the most in five months, according to the median estimate of economists in a Bloomberg News survey before the Commerce Department releases the figures tomorrow. The Federal Open Market Committee meets tomorrow to set monetary policy.

The so-called Aussie weakened against most of its 16 major peers before a report tomorrow economists expect to show Australia’s home loans declined.

New Zealand’s dollar declined against the yen, halting a three-day advance, after Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, cut its milk price target.

China’s central bank weakened its daily fixing for the yuan by the most since August 2010 after the government reported the biggest trade deficit in at least 22 years. The currency fell the most in seven weeks as People’s Bank of China Governor Zhou Xiaochuan said in Beijing the exchange rate is linked to the balance of payments. The nation’s trade shortfall was $31.5 billion in February, four times the previous largest deficit, according to data released on March 10 by the customs bureau. The central bank will use exchange rates and interest rates to manage the economy as Europe’s debt crisis damps global demand, it said in a statement today.

EUR/USD: during the Asian session the pair fell, lowered below $1.31.

GBP/USD: during the Asian session the pair was in range $1.5655-$1.5675.

USD/JPY: during the Asian session the pair fell, after growth on Friday.

On Monday US data starts at 1330GMT with the weekly Capital Goods Index, which is followed at 1400GMT by the Employment Trends Index and then at  1430GMT by the weekly Retail Trade Index. At 1800GMT, the US Treasury Monthly Budget Statement is due.