Foreign exchange market. Asian session: the dollar advanced ahead of Friday's payrolls data

Economic calendar (GMT0):

Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual

01:30 Australia Retail Sales, M/M June 0.4% Revised From 0.3% 0.5% 0.7%

01:30 Australia Trade Balance June -2.68 Revised From -2.75 -3.1 -2.93

01:30 Japan Labor Cash Earnings, YoY June 0.7% Revised From 0.6% -2.4%

04:30 Australia Announcement of the RBA decision on the discount rate 2.0% 2% 2.0%

04:30 Australia RBA Rate Statement

06:00 United Kingdom Nationwide house price index July -0.2% 0.4% 0.4%

06:00 United Kingdom Nationwide house price index, y/y July 3.3% 3.5% 3.5%

The euro slightly declined in Asian trade as the dollar advanced ahead of publication of employment data. Investors expect a strong report, which could shift expectations for a Federal Reserve rate increase to an earlier date.

The Australian dollar sharply advanced against the greenback after the Reserve Bank of Australia left its key interest rate unchanged at 2.0%. RBA Governor Glenn Stevens said that lower interest rates could spur housing price growth, which is already substantial in Sydney and Melbourne, and affect the economy in a negative way in general. This year the RBA has already lowered its benchmark rate twice amid declines in commodity prices and weak inflation. This time the bank reiterated that further cuts are possible in case the economy weakens. Nevertheless recent data showed that business confidence improved and unemployment fell, while it was expected to grow.

EUR/USD: the pair fell to $1.0930 in Asian trade

USD/JPY: the pair rose to Y124.10

GBP/USD: the pair traded around $1.5570-00

The most important news that are expected (GMT0):

(time / country / index / period / previous value / forecast)

08:30 United Kingdom PMI Construction July 58.1 58.4

09:00 Eurozone Producer Price Index, MoM June 0% 0%

09:00 Eurozone Producer Price Index (YoY) June -2% -2.2%

14:00 U.S. Factory Orders June -1% 1.8%

20:30 U.S. API Crude Oil Inventories July 1.9

22:45 New Zealand Unemployment Rate Quarter II 5.8% 5.9%

22:45 New Zealand Employment Change, q/q Quarter II 0.7% 0.5%

23:30 Australia AIG Services Index July 51.2