Key Forex Afternoon Forex Afternoon Notes:Australia AIG manufacturing index 45.4 vs. 49 previouslyJapan capital spending q/y 2.8% vs. …Notes:
- Australia AIG manufacturing index 45.4 vs. 49 previously
- Japan capital spending q/y 2.8% vs. 4.1%
- Australia company operating profits q/q -0.2% vs. 0.7%
- Japan final manufacturing PMI 51.6 vs. 51.5
- China HSB manufacturing PMI 50.7 vs. 50.1
- Australia commodity prices y/y -20.6% vs. -19.2%
- UK Nationwide HPI m/m -0.1% vs. 0.4%
- Spain manufacturing PMI 54.2 vs. 55.2
- Italy manufacturing PMI 51.9 vs. 50.2
- Eurozone final manufacturing PMI 51 vs. 51.1
- UK manufacturing PMI 54.1 vs. 53.5
- Eurozone CPI flash estimate y/y -0.3% vs. -0.5%; Core CPI y/y flash estimate 0.6% unchanged
- US Core PCE Price index m/m 0.1% vs. 0.1%; personal spending m/m -0.2% vs. 0%; Personal income m/m 0.3% vs. 0.4%
Later
- US Final manufacturing PMI
- US ISM Manufacturing PMI
- US Construction spending m/m
- US ISM manufacturing prices
- New Zealand building consents
The Asian markets opened on a quiet note despite the news over the weekend where the PBoC cut its benchmark interest rates and deposit rates by 25bps respectively. The Aussie and Kiwi dollars were muted on the news as probably the lack of any monetary easing stimulus seemed to disappoint the currency markets. Both the Aussie and the Kiwi dollars were trading in a range ahead of the key risk event for the Aussie, the RBA monetary policy meeting early tomorrow.
The Japanese Yen was mixed across the board due to lack of any major news as investors head into a new month and a week packed with lot of monetary policy decisions. The cautious approach of the markets were probably representative of the Yen, which was weaker during the early Asian trading session before managing to grow moderately stronger across the board.
The European trading session saw the markets geared up for a lot of economic data releases, mostly the PMI’s from the Eurozone, which overall came out better than expected. Although the Euro did not react much to the news, a better than expected flash CPI estimates managed to help the Euro as the single currency managed to make a session high towards 1.1235 levels ahead of the US trading session.
The British Pound was somewhat weaker trading mixed across the board despite the fact that manufacturing PMI managed to beat estimates rising 54.1. The Pound’s reaction was mostly muted as the currency was trading weaker against the Greenback and also the Australian dollar.
The US trading session saw quite a few releases, with the Core PCE data and personal spending. Data was broadly mixed with the Core PCE coming out as expected at 0.1%, while personal spending was unchanged at 0.3% from last month. The Greenback was trading moderately stronger across the board with the EURUSD trading lower near 1.121 levels while USDJPY managed to hold on to its gains near 119.845 levels at the time of writing.
Further economic data from the US is on the tap later today with the ISM prices, construction spending and ISM manufacturing data due to be released.
