Economic calendar (GMT0):

01:30    Australia                House Price Index (QoQ)  Quarter I     +3.8%  +3.0%   +1.7%

01:30    Australia                House Price Index (YoY)   Quarter I    +9.3%               +10.9%

01:30    Australia                Home Loans                     March       +2.3%    +1.1%    -0.9%

05:30    China                    Retail Sales y/y                  April         +12.2%  +12.2% +11.9%

05:30    China                    Industrial Production y/y     April         +8.8%    +8.9%   +8.7%

05:30    China                    Fixed Asset Investment      April         +17.6%  +17.8% +17.3%

The U.S. dollar traded mixed against the most major currencies. Market participants are awaiting the release of U.S. retail sales later in the day. U.S. retail sales should increase 0.5% in April. U.S. retail sales excluding autos should rise 0.6% in April.

The New Zealand dollar traded little changed against the U.S. dollar. Food price index in New Zealand rose 0.6% in April, from a 0.3% decrease in March. The weaker-than-expected economic data from China put pressure on the kiwi. Retail sales increased 11.9% in April, from a 12.2% rise in March. Analysts had expected an increase of 12.2%. China’s industrial production rose 8.7% in April, from an 8.8% rise in March. Analysts had forecasted an increase of 8.9%. Fixed asset investment in China climbed 17.3% in April, from a 17.6% gain in March. Analysts had expected a 17.8% rise. China is New Zealand's second biggest export partner.

The Australian dollar dropped against the U.S. dollar due to the weaker-than-expected economic data from Australia and China. The house price inflation in Australia climbed 1.7% in the first quarter, from a 3.8% rise in the fourth quarter 2013. The fourth quarter figure was revised up from 3.4%. Analysts had expected an increase of 3.0%. Home loans in Australia declined 0.9% in March, from a 2.3% rise in February. Analysts had forecasted a 0.1% decrease.

The Japanese yen declined against the U.S. dollar due decreasing demand for safe-haven yen. No economic data was published in Japan.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair climbed to $1.6880

USD/JPY: the currency pair climbed to Y102.30

The most important news that are expected (GMT0):

09:00    Eurozone               ZEW Economic Sentiment                   May       61.2      63.5      

09:00    Germany                ZEW Survey - Economic Sentiment    May       43.2      41.3      

09:30    Australia                 Annual Budget Release                        2014                                     

12:30    U.S.                       Retail sales                                           April      +1.2%   +0.5%  

12:30    U.S.                       Retail sales excluding auto                   April      +0.7%   +0.6%  

12:30    U.S.                       Import Price Index                              April      +0.6%   +0.4%  

14:00    U.S.                       Business inventories                            March   +0.4%  +0.4%            

21:00    New Zealand          RBNZ Financial Stability Report            May                                     

21:05    New Zealand          RBNZ Governor Graeme Wheeler Speaks                                                        

22:45    New Zealand          Retail Sales, q/q                                 Quarter I  +1.2%  +0.9%  

22:45    New Zealand          Retail Sales ex Autos, q/q                   Quarter I +0.7%  +0.9%