The Australian dollar fell on Monday during the Asian trading session, despite the lower-than-expected decrease in the volume of housing loans in Australia, and the yen slipped a bit early in the day after a larger-than-expected decline in core machinery orders in Japan.
USD/JPY was traded at 100.95, gaining 0.36%, AUD/USD rose 0.7574%, adding 0.03% and GBP/USD rose 0.02% to 1.2954.
In Australia, the volume of housing loans fell in May by 1.0% in monthly terms, but was expected to fall by 2.0%, while investment in real estate grew by 3.9% after falling 5.0% in April.
In Japan, the amount of basic machinery orders in May dipped by 11.7% year on year, although it was expected a drop of 8.7%.
Later on Monday, Eurozone finance ministers will gather in Brussels, and the president of the Federal Reserve Bank of Kansas City, Esther George will speak at an event in Missouri.
China reported that the consumer price index in June slowed to 1.9% year on year, its lowest level since June, when the National Bureau of Statistics changed the basket of products on which the index is calculated. Slower growth of prices was because of the slow growth in food prices. Food prices rose in June by 4.6% year on year, after rising 5.9% in May and 7.4% in April. Pork prices - the main driver for the growth of the index in the last few months - increased at an annual rate by 30.1%, after rising 33.6% in May. These data suggest that a period of moderate inflation continues in China. Fears of deflation have disappeared, and it reduces the likelihood that the PBOC will start aggressively to mitigate the monetary policy to support the economy.
The US Dollar Index, showing the strength of the dollar against the trade-weighted basket of six major currencies, was up 0.10% to 96.41.
Last Friday, the dollar fell against other major currencies, as the prospects for another rate hike by the Federal Reserve this year remain uncertain, despite the more positive than expected employment report.
In anticipation of the Bank of England's decision on the monetary policy on Thursday, the market expects a further fall in the pound. The Bank of Canada also will meet to discuss monetary policy this week, but no changes are expected on their part.
Markets are also waiting for the information about the growth of China's economy in the second quarter, which will be on Friday, and data on consumer inflation, retail sales and consumer sentiment in the US, which will appear during the same period.