The release of Purchasing Managers Indexes (PMIs) for themanufacturing and service sectors in Europe on Thursday will beclosely watched as traders look for signals of improving growthin the region. The Australian dollar dipped after the Reserve Bank ofAustralia said that a cut in interest rates would be"appropriate" should inflation stay low and unemployment trendhigher. Sterling also slipped after the Guardian newspaper reportedthat talks between Prime Minister Theresa May and the oppositionLabour Party regarding Britain's exit from the European Unionhad stalled.