Today’s release of the EU Economic Forecast report will include forecasts for all EU member states over the next 2 years and covers a multitude of variables which are intended to gauge and evaluate the EU members and the EU as a whole. Should the report strike an optimistic tone, with a positive outlook for the EU, we would see the EUR being bought by traders, while a report that strikes a negative tone will see the EUR sold off as trader’s price in the new information.

Out of the US we have the release of the ISM Manufacturing PMI which is designed to show an over-view of the activity in the manufacturing sector and acts as a leading indicator as to how business conditions will be in the future based on a survey of several purchasing managers who are regarded as having the most current information on their companies view of the economy. A higher number implies optimism which will filter through to the general economy thus leading traders to buy the USD while a lower number implies a more negative view of the future which will see the USD weaken as traders adjust their positons accordingly.

The Asian session sees the release of the RBA Rate Statement. The RBA has continued to sight fears over run away house prices as a deterrent from cutting rates further and has tried to keep the AUD weaker by voicing its concerns of an overvalued AUD. Today’s report will outline the RBA`s views on economic conditions and inflation in Australia which will give markets clues as to the future monetary policy measures the RBA may employ. A statement which is positive will result in the AUD gaining ground while a more pessimistic tone will see the AUD fall further.