Foreign exchange market. Asian session: the Reserve Bank of Australia (RBA) left the cash rate at a record low of 2.5%

Economic calendar (GMT0):

01:30    Australia               Trade Balance                                                             March   1.26      1.04       0.73

04:30    Australia               Announcement of the RBA decision on the discount rate        2.50%   2.50%    2.50%

04:30    Australia               RBA Rate Statement                                                   

07:48    France                 Services PMI (Finally)                                                    April      50.3      50.3       50.4

07:53    Germany              Services PMI (Finally)                                                    April      52.0      52.0       54.7

07:58    Eurozone             Services PMI (Finally)                                                    April      53.1      53.1       53.1

08:30    United Kingdom    Purchasing Manager Index Services                             April      57.6      57.9       58.7

09:00    Eurozone             Retail Sales (MoM)                                                       March   +0.4%    0.0%     +0.3%

09:00    Eurozone             Retail Sales (YoY)                                                        March   +0.8%  +0.9%    +0.9%

09:00    Eurozone             ECOFIN Meetings

The U.S. dollar traded lower against the most major currencies. Weak China’s HSBC manufacturing purchasing managers’ index was the reason for the decline of the U.S. currency. Investors preferred the yen as safe-haven currency.

The New Zealand dollar increased for a sixth day against the U.S. dollar. No economic data was released in New Zealand. Investors are waiting for the publication of New Zealand’s employment report.

The Australian dollar traded mixed against the U.S. The Reserve Bank of Australia (RBA) left the cash rate at a record low of 2.5%. Analysts expected this decision. The Reserve Bank of Australia Governor Glenn Stevens said the Australian dollar remains high by historical standards, but there has been improvement in the labour market. He added that the RBA should continue its accommodative monetary policy to boost demand and to help growth to strengthen over time. The target for inflation is 2%–3% in the next two years.

Australia’s trade balance surplus dropped to A$713 million in March from A$ 1.26 billion in February. Analysts forecasted a decline to A$1.04 billion.

The Japanese yen traded little changed against the U.S. dollar. Japan’s markets were closed today for a public holiday.

EUR/USD: the currency pair climbed to $1.3880

GBP/USD: the currency pair increased to $1.6880

USD/JPY: the currency pair declined to Y102.00

AUD/USD: the currency pair traded mixed

The most important news that are expected (GMT0):

09:30    Australia                Annual Budget Release               2014                                     

12:30    Canada                  Trade balance, billions                March     0.29      0.60      

12:30    U.S.                       International Trade, bln              March    -42.3     -40.1     

14:00    Canada                  Ivey Purchasing Managers Index April       55.2      57.3      

21:30    U.S.                       FOMC Member Jeremy Stein Speaks                                                 

22:45    New Zealand          Employment Change, q/q           Quarter I +1.1%  +0.7%  

22:45    New Zealand          Unemployment Rate                   Quarter I   6.0%    5.8%     

23:50    Japan                    Monetary Policy Meeting Minutes