Asian session: Demand for the dollar was supported

01:30 Australia Producer price index, q / q Quarter I +0.3% +0.6% -0.3%

01:30 Australia Producer price index, y/y Quarter I +2.9% +2.2% +1.4%

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

The yen rose as incumbent Nicolas Sarkozy and Socialist challenger Francois Hollande made it to the final round of France’s presidential elections amid concern Europe is failing to contain the region’s debt crisis.

Demand for the dollar was supported on the prospect reports tomorrow will show the U.S. economy is gaining momentum, reducing the likelihood the Federal Reserve will expand monetary easing. The Fed will release a statement on monetary policy along with its projections for growth, unemployment and inflation on April 25. All 76 economists surveyed by Bloomberg predict the central bank will keep its benchmark rate in a range of zero to 0.25 percent at the meeting.

The so-called Aussie dollar declined against all 16 of its major peers after Australia’s producer price index dropped 0.3 percent in the January-to-March period from the prior quarter, when it gained 0.3 percent, the Bureau of Statistics said in Sydney today. The index was forecast to climb 0.4 percent, according to the median estimate in a Bloomberg News survey.

A Credit Suisse Group AG index based on swaps indicates traders are betting the Reserve Bank of Australia will lower rates by 98 basis points over the next 12 months. That compares with 38 basis points indicated on March 20.

EUR/USD: during the Asian session the pair decreased.

GBP/USD: during the Asian session the pair fell.

USD/JPY: during the Asian session the pair receded from week's high.

European data starts at 0600GMT with German Construction Orders, while this morning also sees the flash Manufacturing/services PMI

releases for the core-European states, including France at 0658GMT,Germany at 0728GMT and the main EMU release at 0758GMT. UK data at 0830GMT sees Bank of England Trends in Lending and CML Gross Mortgage Lending data. At 1745GMT, Treasury Secretary Tim

Geithner and other the other five Social Security trustees issue the annual report with updated projections of Trust Fund benefits schedule. US data at 1900GMT then sees Treasury Allotments by Class data.