The U.S. dollar was seen trading mixed on Tuesday. The declines came despite a strong non-manufacturing PMI report from ISM. The ECB President, Mario Draghi was scheduled to speak on Tuesday but the meeting was called off. Meanwhile, the new Italian Prime Minister Giuseppe Conte gave his speech where he touched upon the manifesto of the coalition government which included rejecting austerity measures. The Euro was little changed on his comments.
The RBA’s monetary policy meeting did not see any major changes as the central bank held interest rates unchanged at 1.50% as widely expected. Markit’s services PMI data from the Eurozone showed that services sector activity eased to 53.8, down from April’s print of 53.9. In the UK, the services sector activity rebounded to 54.0 beating estimates of a modest increase to 52.9.
In the U.S. trading session, the ISM’s non-manufacturing PMI data showed a strong increase to 58.6 which was above estimates of 57.9 and higher than April’s 56.8.
Earlier in the day, Australia’s quarterly GDP data showed a 1.0% increase in the first quarter. This was higher than the estimates of a 0.9% increase and the GDP advanced from a revised 0.5% in the fourth quarter of 2017.
Looking ahead, the economic calendar for the day includes the trade balance figures from Canada which will later be followed by the U.S. non-farm productivity report.