Forex - Euro down in Asia as investors await definite news from Brussels

Investing.com - The euro lost ground in Asia on Tuesday as investors awaited more definite news from Brussels on the fate of a bailout package for Greece to meet its sovereign debt payments, while an uptick in manufacturing data from China failed to lift the Aussie.

Elsewhere, in China the June Markit Flash Manufacturing PMI rose to 49.6, better than May's final of 49.2 and the first without HSBC following the end of their distribution deal.

"The latest Flash China Manufacturing PMI survey provided a mixed bag of data in June," said Annabel Fiddes, Economist at Markit.

"On the one hand, the sector shows signs of improvement as output stabilized amid a slight pick up in total new work, while purchasing activity also rose slightly over the month. On the other hand, manufacturers continued to cut their staff numbers, with the latest reduction the sharpest in over six years. This suggests that companies have relatively muted growth expectations as demand conditions both at home and abroad remain relatively subdued. The data add to evidence that the sector has lost growth momentum in Q2 as a whole, and suggests that the authorities may step up their efforts to stimulate growth and job creation in the second half of the year."

EUR/USD changed hands at 1.1311, down 0.26%, while USD/JPY traded at 123.59, up 0.17%. AUD/USD was quoted at 0.7714, down 0.16%, despite the China PMI data. China is a top export destination for commodities from Australia.

Earlier, Greece's Prime Minister, Alexis Tsipras told reporters late Monday that proposals submitted to creditors to resolve the country's immediate debt obligations are aimed at fairness and that they should be adopted.

"I will use a term the EU leaders are using: the ball is now on EU leadership court," he concluded.

He made the remarks after the Emergency Eurozone summit in Brussels, adding that deliberations will continue for "a few more days" in order to secure the best possible deal for Greece.

European Commission President Jean-Claude Juncker earlier said Greece's proposals are a step in the right direction and that he was confident a deal could be finalized this week.

"I am convinced that we will come to a final agreement this week, for the simple reason that we have to find an agreement this week," he said. "We cannot play, as is said in football, for extra time any longer."

In Australia, the first quarter housing price index rose 1.6%, below the quarter-on-quarter gain of 2.3% expected.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.31% to 94.82.

Overnight, the dollar turned lower against a basket of other major currencies on Monday, even after data showed that U.S. existing home sales rose more than expected in May to hit the highest level since 2009.

The National Association of Realtors reported on Monday that U.S. existing home sales increased 5.1% to 5.35 million units last month from 5.09 million in April. Analysts had expected existing home sales to rise 4.4% to 5.26 million units in May.

The greenback had come under pressure after the Federal Reserve's rate statement last week tempered expectations for a rate hike later this year.