Foreign exchange market. Asian session: the U.S. dollar declined

Economic calendar (GMT0):

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

01:35 Japan Manufacturing PMI (Finally) December 52.6 52.5 52.6

01:45 China Markit/Caixin Manufacturing PMI December 48.6 49 48.2

The U.S. dollar fell to a ten-month low against the yen as tensions in the Middle East and weak economic data from China increased demand for this safe-haven currency. Risk sentiment declined after Saudi Arabia cut diplomatic ties with Iran on Sunday.

The Australian dollar fell amid disappointing data from Australia's major trading partner China and weaker-than-expected domestic data. The index of activity in Australia's manufacturing sector from AiG declined to 51.9 points in December from 52.5 reported previously. The index remained above 50, which suggests expansion.

The Markit/Caixin Manufacturing PMI for China declined to 48.2 in December from 48.6 in the previous month falling further into contraction territory. Economists had expected a reading of 49.0. Many experts don't expect China's economic growth to exceed 6.5% in 2016.

EUR/USD: the pair rose to $1.0890 in Asian trade

USD/JPY: the pair fell to Y119.44

GBP/USD: the pair traded within $1.4692-1.4744

The most important news that are expected (GMT0):

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

08:30 Switzerland Manufacturing PMI December 49.7

08:50 France Manufacturing PMI (Finally) December 50.6 51.6

08:55 Germany Manufacturing PMI (Finally) December 52.9 53

09:00 Eurozone Manufacturing PMI (Finally) December 52.8 53.1

09:30 United Kingdom Consumer credit, mln November 1178

09:30 United Kingdom Net Lending to Individuals, bln November 4.8

09:30 United Kingdom Mortgage Approvals November 69.63 70.4

09:30 United Kingdom Purchasing Manager Index Manufacturing December 52.7

13:00 Germany CPI, m/m (Preliminary) December 0.1% 0.2%

13:00 Germany CPI, y/y (Preliminary) December 0.4% 0.6%

14:45 U.S. Manufacturing PMI (Finally) December 52.8 51.3

15:00 U.S. Construction Spending, m/m November 1% 0.5%

15:00 U.S. ISM Manufacturing December 48.6 49