The Australian slumped sharply against the US dollar on Monday after The Chinese manufacturing growth retreated during the month of May, especially after tightening monetary policy in April for four times since October 2010, as the Chinese market is the largest for Australian exports.
The Australian dollar dropped against its major counterparts as investors increased their bets that the Reserve Bank of Australia (RBA) will keep the rates steady during the next Bank's meeting as central banks aims to support economic growth.
Moreover, Asian currencies started the week with a decline, where they declined for a second straight day on mounting fears over the outlook for the recovery and renewed European debt fears.
The European shared currency continues its downside movement against majors, especially versus the dollar on escalating debt woes, encouraging investors to increase demand for heave currencies like Japanese Yen and US dollar over the higher yielding currencies like the Aussie.
On Thursday, the Australian economy is not going to release any fundamental. On the other hand, the U.S. economy will release the new home sales indicator for April at 14:00 GMT, where it's expected to come at 305 thousand rising by 1.7% compared with the prior reading of 300K.
The U.S. Richmond Fed manufacturing index for May will be released at 14:00 GMT which is expected unchanged at 10 in May.
Originally posted here
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