Foreign exchange market. Asian session: the Australian dollar traded higher against the U.S. dollar due to the better-than-expected Australian business confidence data and the Chinese consumer price inflation

Economic calendar (GMT0):

01:30    Australia                National Australia Bank's Business Confidence  May       6                          7

01:30    Australia                ANZ Job Advertisements (MoM)                      May   +2.2%                  -5.6%

01:30    Australia                Home Loans                                                   April   -0.8%    +0.3%       0%

01:30    China                    PPI y/y                                                           May    -2.0%    -1.5%     -1.4%

01:30    China                    CPI y/y                                                           May   +1.8%    +2.4%  +2.5%

05:45    Switzerland            Unemployment Rate                                      May     3.2%     3.2%      3.2%

06:00    Japan                    Prelim Machine Tool Orders, y/y                     May     48.7%                 24.1%

06:45    France                  Industrial Production, m/m                             April    -0.4%    +0.3%    +0.3%

06:45    France                  Industrial Production, y/y                               April    -0.8%                    0.0%

07:15    Switzerland           Retail Sales Y/Y                                               April    +3.4%     +3.5%  +0.4%   

08:30    United Kingdom    Industrial Production (MoM)                            April      -0.1%   +0.4%   +0.4%

08:30    United Kingdom    Industrial Production (YoY)                             April      +2.3%  +2.7%   +3.0%

08:30    United Kingdom    Manufacturing Production (MoM)                    April      +0.5%  +0.4%   +0.4%

08:30    United Kingdom    Manufacturing Production (YoY)                     April      +3.3%  +4.0%   +4.4%

The U.S. dollar traded mixed against the most major currencies. The U.S. dollar was still supported by Friday’s nonfarm payrolls report. The U.S. economy added 217,000 in May, missing expectations for a 218,000 rise, after a 282,000 gain in April. April’s figure was revised down from a 288,000 increase.

The New Zealand dollar rose against the U.S dollar in the absence of any major economic reports. The kiwi was supported by expectations the Reserve Bank of New Zealand will raise interest rates again this Wednesday.

The increasing consumer price inflation in China supported the New Zealand and Australian dollar. The Chinese consumer price index increased 2.5% in May, after a 1.8% gain in April. Analysts had expected a 2.4% rise.

The Chinese producer price index declined 1.4% in May, after a 2.0% decrease in April. Analysts had expected a 1.5% fall.

The Australian dollar traded higher against the U.S. dollar due to the better-than-expected Australian business confidence data and the Chinese consumer price inflation. The National Australia Bank released its business confidence index for Australia. The index climbed to 7 in May, from 6 in April.

Job advertisements in Australia fell 5.6% in May, after a 1.9% increase in April. April’s figure was revised down from a 2.2% gain.

Home loans in Australia were flat in April, after a 0.8% fall in March. March’s figure was revised up from a 0.9% decline. Analysts had expected a 0.3% gain.

The Japanese yen increased against the U.S. dollar ahead of the Bank of Japan (BoJ) meeting this Friday. Investors speculate that the BoJ’s monetary policy will support the Japanese currency.

Japan’s preliminary machine tool orders decreased to 24.1% in May from 48.7% in April. April’s figure was revised down from 48.8%.

Japanese tertiary industry activity index dropped to -5.4% in April from 2.4% in March. Analysts had expected the index to fall -3.3%.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair climbed to $1.6815

USD/JPY: the currency pair declined to Y102.35

The most important news that are expected (GMT0):

14:00    United Kingdom   NIESR GDP Estimate        May         +1.0%                 

14:00    U.S.                    JOLTs Job Openings         April          4014     4040     

23:50    Japan                  BSI Manufacturing Index Quarter II   12.5      14.1