Here is what you need to know on Monday, May 6:

The action in financial markets remains subdued at the start of the week. The US Dollar (USD) holds steady and US stock index futures trade little changed. HCOB will release revisions to April PMI data for Germany and the Eurozone on Monday and Eurostat will publish Producer Price Index figures for March. The US economic docket will not offer any high-tier data releases but investors will pay close attention to comments from Federal Reserve (Fed) policymakers.

The USD Index (DXY) came under heavy selling pressure in the American session on Friday following the disappointing labor market data. Although the DXY managed to stage a late rebound, it lost nearly 1% for the week. Early Monday, the index moves sideways slightly above 105.00 and the benchmark 10-year US Treasury bond yield stays deep in negative territory near 4.5%.

AUD/USD gathered bullish momentum and reached its highest level since mid-March at 0.6650 on Friday. The pair retreated slightly at the beginning of the week but managed to stabilize above 0.6600. In the Asian trading hours on Tuesday, the Reserve Bank of Australia (RBA) will announce monetary policy decisions. The RBA is widely forecast to hold the policy rate unchanged at 4.35%.

Australian Dollar remains firmer due to improved risk appetite.

EUR/USD advanced to a fresh multi-week high above 1.0800 on Friday but erased a portion of its daily gains heading into the weekend. Nevertheless, the pair rose over 0.5% for the week. Early Monday, EUR/USD fluctuates in a tight channel above 1.0750.

After spiking above 1.2630 in the early American session on Friday, GBP/USD reversed its direction and closed the day at around 1.2550. The pair holds steady near its weekly closing level in the European morning.

USD/JPY lost more than 3% in the previous week and registered its largest one-week loss since late 2022, pressured by suspected fx interventions. The pair stages a rebound early Monday and was last seen rising more than 0.6% near 154.00.

Gold closed in negative territory for the second consecutive week but managed to hold above $2,300. XAU/USD edged higher in the European morning and was last seen trading above $2,310.