The US dollar is extending strength across the board for obvious reasons, rising 10-year Treasury yields and expectations for the policy decision of the US Federal Reserve. The USD/JPY pair surpassed 109.40, aiming for a further advance. Experts say that the US dollar is going to enjoy high demand this trading week. The AUD/USD pair sank below 0.7520. The Aussie dollar has been weighed down by a report on business activity in Australia's manufacturing sector and the policy decision of the Reserve Bank of Australia. The regulator left the official cash rate unchanged at 1.75% as it was widely expected by market participants.
The board of central bank stated that the domestic economy is not ready for monetary tightening. Today, the Australian Industry Group reported that a Manufacturing PMI dropped to 58.3 in April from 61.1 in March. On Friday, the Reserve Bank of Australia is due to present a monetary policy statement, but it is unlikely to push the AUD/USD pair to previous highs. At present, investors are focused on remarks from the meeting of the Federal Open Market Committee. Market participants will be looking for clues as to the Fed's intentions to raise the key interest rate at the June policy meeting.