European session: the euro down

Data
01:30 Australia New Motor Vehicle Sales (MoM) August -0.8% +3.6%
01:30 Australia New Motor Vehicle Sales (YoY) August +5.0% +6.4%
08:00 Eurozone Current account, adjusted, bln July 12.7 10.9 9.7
09:00 Eurozone Trade Balance s.a. July 10.5 12.3 7.9

Euro weakened against the yen and the dollar for the first time in five days amid unrest in Spain, and after the Spanish Prime Minister Mariano Rajoy said that Spain may need financial assistance. As market participants expect the meeting, the Prime Minister of Spain with the Prime Minister of Italy, Mario Monti, to be held in Rome on 21 September. The next day, German Chancellor Angela Merkel will hold talks with French President François Hollande.

The single currency fell against most of its 16 major counterparts after European leaders last week in Cyprus to discuss the terms of salvation and the role of the European Central Bank. Euro also declined following the demonstrations in Madrid, which took place two days and were directed against the additional austerity measures.

The Australian dollar fell to a six-month maximums against the dollar amid falling demand for higher-yielding assets. As the currency of Australia and New Zealand fell against the yen amid escalating tensions between Japan and China over disputed islands.

The dollar index rose 0.1% to 78.947, after falling last week to the lowest level since February.