China May retail sales of consumer goods MoM -0.38%; April -0.48%.

The Reserve Bank of Australia left the cash rate at 4.35% in a unanimous 9-0 vote, marking its first pause after three increases this year that have begun to weigh on the economy. Chair Bullock will hold a press conference; markets will watch for guidance on whether the bank is entering a prolonged pause or will maintain a restrictive stance. The RBA said: "Since the start of the year the cash rate target has been increased three times; the current financial environment is tighter than before, and signs of economic slowing have appeared as expected." The pause signals a pullback from earlier aggressive tightening that made the RBA an outlier among major central banks. Policymakers said inflation remains too high and energy cost upside from the Iran war is a risk, but recent soft data gives scope to hold rates steady and reassess.

Reuters reported on the 15th that President Trump and Vice President Pence have signed a U.S.-Iran memorandum of understanding, and the speaker of Iran’s Islamic Consultative Assembly has also signed.