Asian session: The euro fell

00:01 United Kingdom BRC Retail Sales Monitor y/y January +0.3% -0.5% +1.9%

00:30 Australia Trade Balance December -2.64 -0.81 -0.43

00:30 Australia House Price Index (QoQ) IV quarter +0.3% +0.3% +1.6%

00:30 Australia House Price Index (YoY) IV quarter +0.3% +0.9% +2.1%

01:45 China HSBC Services PMI January 51.7 54.0

03:30 Australia Announcement of the RBA decision on the discount rate - 3.00% 3.00% 3.00%

03:30 Australia RBA Rate Statement -

The euro fell against the yen, following yesterday’s drop which was the biggest since June, amid corruption allegations against Spanish Premier Mariano Rajoy and uncertainty ahead of Italian elections this month. Spain’s Rajoy, facing opposition calls to resign amid contested reports about illegal payments, traveled to Berlin yesterday as euro-area leaders schedule a series of meetings this week ahead of a Feb. 7-8 European Union summit. Spanish bonds slumped yesterday, sending the 10-year yield up to 5.44 percent, the highest since Dec. 11.

A poll showed former Italy Premier Silvio Berlusconi closed the gap on front-runner Pier Luigi Bersani even as he appeals a four-year prison sentence for tax fraud. Voting takes place on Feb. 24-25.

The 17-nation currency halted this year’s climb against the dollar before European Central Bank policy makers meet on Feb. 7.

The yen rose against most major peers as investors bought haven assets after Asian equities slid.

Australia’s dollar slid against all of its 16 major peers after the Reserve Bank of Australia kept its benchmark interest rate unchanged at the half-century low of 3 percent. The inflation outlook gives scope for further easing, the RBA said in a statement after the decision.

EUR/USD: during the Asian session the pair fell below $1.3500.

GBP/USD: during the Asian session, the pair traded in the range of $1.5740-70.

USD/JPY: during the Asian session, the pair traded in the range of Y91.95-55.

EMU services PMI data due this morning, Spain up at 0813GMT through to EMU at 0858GMT. EMU retail sales due at 1000GMT. US non mfg ISM the interest into the afternoon (1500GMT).