US STATISTICS HURT THE US DOLLAR TODAY, AND THE RBA DECISION IS APPROACHING.

The Reserve Bank of Australia meeting, where another interest rate hike may be announced, will be the Asian session. Prior to the meeting, Australia will publish statistics on the Q1 Current Account Balance, Japan will report on House Spending, and ANZ will release the Commodity Price Index.

On Tuesday, June 6, you should be aware of the following:

US economic statistics on Monday depressed the US dollar, erasing Friday's gains. The positive job statistics had helped the dollar gain ground, but on Monday, the data took a turn for the worse and the currency lost ground. The Nasdaq fell 0.09% while the Dow Jones fell 0.59%.

The US service sector continues to grow, according to data released on Monday. The ISM Services PMI fell from 51.9 in April to 50.3 in May, lower than the 51.5 market forecast. The Prices Paid index decreased from 59.6 to 56.2, and the Employment index dipped below 50. The study provides arguments for those Federal Reserve (Fed) officials who prefer a pause at the June meeting by presenting evidence of lowering inflation. After the release, US yields fell before paring their losses. The DXY concluded below the high of 104.40 set on June 5 at about 104.00.

The Japanese yen outperformed all other major currencies, helped by falling government bond yields and a decline in Wall Street stock prices. USD/JPY declined from close to 140.50 to 139.20. On Tuesday, Japan will present data on Total Household Spending.

Economic data from the Eurozone (EZ PPI, Sentix Investor Confidence, and HCOB PMI) came in below estimates. Following the data, Christine Lagarde, president of the European Central Bank, stated that the underlying inflation has peaked. A stronger US dollar helped the EUR/USD pair recover from 1.0680 to 1.0720. German April retail sales are due on Tuesday.

USD/CHF decreased and closed just above 0.9050. In Switzerland, the Consumer Price Index increased by 0.3% in May.

AUD/USD increased for the third day in a row, but again encountered resistance at 0.6640. On Tuesday, the Reserve Bank of Australia (RBA) will make its choice public. Analysts have warned that a rate hike of up to 25 basis points is likely, but the market consensus is for the central bank to retain the cash rate at 3.85%.

Rabobank analysts wrote:

In our opinion, the RBA will maintain its current stance on policy on June 6. This would give decision-makers more time, which is scheduled for release on June 7, and to evaluate the effects of the current tightening of the fiscal stance. However, tightening of policy later in the year, and believing that this week's policy choice will be a close call.

NZD/USD increased only slightly, over 0.6000. The RBA's decision is crucial for the Kiwi because the ANZ Commodity Price Index is due on Tuesday.

In the lead-up to Wednesday's Bank of Canada meeting, USD/CAD traded sideways at 1.3440, appearing stable. A spike in the price had caused a Loonie rally early on Monday.

Oil prices ended July with no change, due to Saudi Arabia's announcement of a decrease. WTI crude oil had a final price below $72.00. Gold increased from around $1,940 to $1,965 thanks to a weaker US dollar and lower rates.

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