The dollar's losses extended following yesterday's disappointing ISM manufacturing report, initially deepening during Asia Pacific trading before a modest recovery. Despite this, the yen has resisted the dollar's rebound and has emerged as the strongest of the G10 currencies.
Gold, which recovered and settled above $2,350 yesterday, has come under pressure again today and seems poised to test yesterday's low. Meanwhile, July WTI crude oil, which tested $80 last week, has been sold off below $73, reaching its lowest level since early February.

Asia Pacific Markets
The disappointing ISM manufacturing survey led to a drop in US interest rates, broadly lowering the dollar. It fell below JPY156 for the first time since May 21. Continued selling pressure today pushed the greenback below the trendline connecting the two spike lows in May, with the line breaking near JPY155.90.
The Australian dollar, which has not settled below the $0.6600 handle since May 8, has nearly traversed its entire range in the past three sessions. Although it made a marginal new high today, it remained below $0.6700 and reversed lower, nearing yesterday's low below $0.6640.

European Markets
Today, European markets are relatively quiet. Final services and composite PMI data, along with the April PPI, are due tomorrow. Ahead of the ECB meeting on Thursday, the aggregate April retail sales figures will also be released.
The euro gained strength from the softer US ISM manufacturing report, finally pushing above $1.09 for the first time since March 21 after repeated attempts during the North American session yesterday.
Sterling closed above $1.28 for the first time since March 11, approaching resistance near $1.2820 before retreating to $1.2760 in the European morning.

American Markets
The ISM manufacturing index overshadowed the PMI figures once again. The US May manufacturing PMI was revised upwards to 51.3 from the initial estimate of 50.9, against a median forecast of 49.9 from Bloomberg's survey. Today's April JOLTS report is expected to show a decline in job openings, indicating a gradual normalization of the labor market. Additionally, April factory orders are on the agenda.

Despite setbacks, the dollar held CAD1.3600 yesterday. It has not settled below CAD1.36 since April 9, highlighting the importance of this support level in recent price action.