Forex Today: Aussie outperforms in Asia, a light calendar ahead

The US dollar started the week on the back foot across the board, which emerged the main underlying theme in Asia this Monday, helping most majors recover some ground, as Treasury yields sagged. The Aussie emerged the strongest while the Kiwi traded better offered amid negative oil prices and downbeat New Zealand services PMI data. The USD/JPY pair managed to reverse a dip, but traded neutral below the 109.50 levels, as the USD bulls lose last week’s bullish momentum.

Meanwhile, the Asian equity markets traded firmer, with the Chinese stocks leading the pack, despite the latest regulatory clampdown measures announced on the asset-backed securities.

Main topics in Asia

The return of Euroscepticism as Italy's 5 Star Movement and the League reach an agreement

On Sunday evening in Italy, what is arguably the biggest Eurosceptic alliances in Europe, leaders of Italy’s far-right League party and populist 5 Star Movement on Thursday moved closer to creating a coalition government. 

June deadline set for Northern Ireland Brexit solution - Reuters

According to reporting by Reuters, the French Foreign Minister Jean-Yves Le Drian has set a deadline for progress on Brexit concerns arising from Northern Ireland's border issues.

UK consumer spending continues to fall in April - Visa

Brits tightened their purse strings in April, figures from payment card company Visa showed on Monday, signaling the Bank of England (BOE) could be wrong in their assessment that much of the slowdown in Q1 GDP growth was temporary. 

Canada PM Trudeau: Optimistic on trade deal with US - Reuters

Canada’s PM Trudeau said in a pre-release excerpt from an interview to be published by the German daily, Handelsblatt, today, he is optimistic that a new North American Free Trade Agreement (NAFTA) trade deal with the US can be reached.

UK PM May: Committed to ensuring Iran deal is upheld - Reuters

The UK PM Theresa May told the Iranian president on Sunday, Britain and its European partners remain committed to ensuring the nuclear deal with Iran is upheld and Tehran must continue to meet its obligations under the pact, Reuters reports.

PBOC injects 156Bln Yuan via 1-year Medium term Lending Facility

The People’s Bank of China (PBOC) came out with a statement on Monday, announcing that it injected 156Bln Yuan through the 1-year Medium term Lending Facility (MLF).

Dollar Index: Loss of upward momentum

The dollar rally seems to have run its course, the action in the treasury yields and the technical studies indicate.

Key Focus ahead

Today’s macro calendar ahead remains absolutely data-empty, with nothing on the cards from the Euroland and the US docket. Hence, attention remains on a slew of speeches due to be delivered by the European Central Bank (ECB) policymakers alongside the Fedspeaks, with the list found below.

0630GMT – ECB’s Villeroy

0645GMT – Fed’s Mester

0830GMT - ECB’s Carlos da Silva Costa 

1000GMT - ECB’s Mersch

1015GMT – ECB’s Lautenschlaeger

1145GMT – ECB’s Chief Economist Peter Praet

1340GMT – Fed’s Bullard

1500GMT - Lautenschläger speaking again

1615GMT- ECB’s Praet (Round 2)

1745GMT – ECB’s Benoît Cœuré

Looking ahead, all eyes remain on Tuesday’s event calendar, with the RBA minutes and China data dump to drive the fx board in Asia while the German Prelim GDP q/q will hog the limelight in early Europe.

EUR/USD desperately trying to claw back 1.20, but German GDP could be blocking the way

Monday brings little data to the table, and the EUR/USD may be looking at a smooth ride, at least until Tuesday. German and Euro-area GDP preliminary figures drop on Tuesday beginning at 06:00 GMT …

GBP/USD: Soft Visa consumer spending could cap upside

The GBP/USD pair has been sidelined around the 200-day MA for more than a week now, which indicates the sell-off from the April 17 high of 1.4377 may have run out of steam.

Key data events for the week ahead - Westpac

The week is starting out on the quiet tip, but there is plenty in the day's ahead to be keeping a watch out for - Analysts at Westpac highlight the key events.

Week Ahead: Jobs and GDP in focus

The week ahead will be somewhat lighter in terms of major scheduled economic events than in the past week.