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This busy week began with a small retreat by the dollar. Will it continue? Or will last week’s fear resume? Today’s Pending Home Sales and ISM Manufacturing PMI are in the limelight today. Let’s see how this week begins:

In Australia’ the AIG Manufacturing Index dropped modestly to 51.7. The more interesting MI Inflation Gauge fell by 0.3%. Inflation isn’t picking up in Australia. This might make the rate hikes more smooth. In the housing sector, the House Price Index (HPI) leaped by 4.2%, much more than a 3.1% that was expected.

AUD/USD now trades at 0.9025, a little bit higher than last week’s close. For more on this busy week in Australia, read the AUD/USD Forecast.

Average Cash Earnings fell by 1.6, a little bit better than expected. USD/JPY started the week higher, and is now above 90.

In Switzerland, SVME PMI is expected to positive once again, rising from 54.3 to 55.1. USD/CHF is now at 1.0240.

In Europe, Final Manufacturing PMI is expected to exceed the initial reading and rise to 50.9. EUR/USD trades now at 1.4747, with last week’s range. For more on the Euro, read the EUR/USD Forecast.

In Britain, Manufacturing PMI is expected to finally pass the 50 mark, and show expectations for economic expansion. This is an important release for the Pound. GBP/USD is now at 1.6426, looking for a direction. Read the GBP/USD Forecast for more.

In the US, this busy week begins early. ISM Manufacturing PMI is expected to rise from 52.6 to 53.1 points. A drop below 50 will cause fear again, and will push the dollar higher.

At the same time, Pending Home Sales are expected to rise by 0.2%. Last month’s 6.4% jump won’t be repeated. Both indicators are important, and are published at the same time. Watch out for price action at around 15:00 GMT.

In New Zealand, Labor Cost Index is expected to rise by 0.3%, and might help the kiwi recover from the dovish rate decision last week. NZD/USD is now at 0.7203, also somewhat higher than last week.

That’s it for today.There’s lots more in the upcoming days. Check out the weekly forex forecast for more.

Happy forex trading!