Asian session: The dollar weakened

01:30 Japan Labor Cash Earnings, YoY February -0.1% -0.1% -0.7%

03:00 Australia Announcement of the RBA decision on the discount rate April 3.00% 3.00% 3.00%

03:00 Australia RBA Rate Statement April

The dollar weakened past 93 yen for the first time in a month before data this week forecast to show the recovery in the U.S. job market isn’t fast enough to prompt the Federal Reserve to reduce monetary stimulus. Companies in the U.S. probably added 200,000 jobs last month after an increase of 198,000 in February, economists forecast in a Bloomberg News survey before ADP Research Institute releases the data tomorrow. Government figures on April 5 are likely to show that the jobless rate was 7.7 percent in March, unchanged from the prior month, according to another poll.

The yen reached a five-week high against the euro as investors weighed the chances of new stimulus from the Bank of Japan at a two-day meeting starting tomorrow. Japanese Prime Minister Shinzo Abe said today in parliament that the central bank shouldn’t pursue a 2 percent inflation target “at all costs” and may fail to achieve it should global conditions change. BOJ Governor Haruhiko Kuroda said today the central bank will do whatever it can to beat deflation and that it will conduct bold monetary easing. He spoke in parliament before leading his first policy meeting since taking over from Masaaki Shirakawa last month. The BOJ board will convene twice this month, with another meeting scheduled on April 26.

Australia’s dollar extended a gain even after the nation’s Reserve Bank held interest rates unchanged and signaled that existing stimulus is working. Reserve Bank of Australia Governor Glenn Stevens and his board today left the overnight cash-rate target at 3 percent, which was was predicted by all 28 economists surveyed by Bloomberg.

EUR / USD: during the Asian session, the pair rose to $ 1.2880.

GBP / USD: during the Asian session, the pair rose to $ 1.5230.

USD / JPY: during the Asian session the pair fell to Y92.55.

European markets are back from the Easter vacation and a full data calendar awaits, with the eurozone manufacturing PMI numbers set to dominate. Also expected Tuesday are the German flash HICP numbers. Other early releases include France March car registrations and Spain Mar unemployment numbers, both at 0700GMT. The manufacturing PMI numbers start from 0713GMT with the release of the Spanish data, followed by Italian numbers at 0743GMT, the French data at 0748GMT and German numbers at 0753GMT. Overall eurzone numbers are set for release at 0758GMT, with analysts looking for a number of 46.6, unchanged on previous. Eurozone unemployment numbers are expected at 0900GMT. However, release today of UK mfg PMI data at 0828GMT will provide the key domestic data on the day with most expecting a pessimistic reading. UK borrowing data also due at 0830GMT.