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© Reuters. Bank employee counts US dollar banknotes at a branch in Hanoi
By Wayne Cole
SYDNEY (Reuters) – The dollar was virtually flat in Asia, as investors waited for readings on the Chinese manufacturing industry and the European economy to measure the pulse of the global economy.
China's official purchasing management index (PMI) is expected to hold up at 50.5 in April, after bouncing back in March in the hopes, badysts said, that stimulus measures were taking shape. Boom in the economy.
A strong report could support risky badets and currencies related to Chinese growth, including the Australian dollar, while putting pressure on the yen refuge.
Eurozone economic growth figures released later in the session are expected to show a modest increase of 0.3% in the first quarter, but at least equal to the previous quarter and could be seen as a sign of stabilization. .
Even such sluggish growth could have the effect of preventing speculators from acquiring significant short positions on the euro, worth $ 14.8 billion in the week to 23 April.
For the time being, the euro has remained stable at 1.1184 dollar, after squeezing it from the nearly two-year low of 1.111 dollar reached last week.
The dollar was stuck at 111.67 yen, after trading a tight fork with Japan on vacation. The resistance is at the last peak of 112.39, with support at 111.37 and 110.83.
Against a basket of currencies, the dollar has weakened slightly to 97.856, after being cleared from the record high of 98.330 nearly two years ago last week.
The main hurdle for the dollar remains the two-day meeting on Federal Reserve policy that ends Wednesday with a statement and a press conference by President Jerome Powell.
No policy changes are expected, but the market wants to know how Powell will solve the gap between solid economic growth and a slowdown in inflation.
US overnight data showed consumer spending had the strongest recovery in March at 9.5 months, but core inflation slowed further to a 14-month low .
The basic index of personal consumption spending, the measure of inflation favored by the Fed, has slowed to 1.6% and is far from the 2% target of the central bank.
"A sustained acceleration of underlying inflation remains elusive and contributes to low expectations for inflation," said ANZ Economist Felicity Emmett. "This is not just a problem for the FOMC, it's a real concern for other big central banks."
"We expect that the dovish tone of central banks will continue in the near future," she added. "Given the signs of recovery in growth, this is very positive for risky badets."
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