Talking Points
- Australian Dollar Sold on Unexpected Slump in Chinese Manufacturing
- Eurozone PMI Revisions Headline Quiet European Economic Calendar
The Australian Dollar underperformed in overnight, down as much as 0.7 percent against its top counterparts, after Chinese Manufacturing PMI data showed factory-sector activity unexpectedly shrank in August. The official reading released on Saturday revealed the index fell to 49.2, the lowest in nine months. A print below “50” implies contraction. The bulk of the decline came from a slump in raw-materials inventories, pointing to ebbing demand for Australia’s key export commodities. The country counts on China as its top trading partner and owes much the mining boom keeping the economy afloat to sales to the East Asian giant.
The economic calendar is relatively quiet in European hours and price action is likely to prove somewhat muted with US financial markets absent for the Labor Day holiday. Final revisions of Augusts’ Eurozone Manufacturing PMI figures are on tap but their market-moving potential seems limited. Indeed, after twelve consecutive months of retrenchment, continued bad news has probably lost some of its punch. Implications for ECB monetary policy outlook likewise seem limited, further denting the potential for significant volatility, as traders remain preoccupied with the possible emergence of the central bank’s bond-buying later in the week.
Asia Session: What Happened
|
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
|
22:45 |
NZD |
Terms of Trade Index (QoQ) (2Q) |
-2.6% |
-2.0% |
-2.3% |
|
23:01 |
GBP |
Lloyds Business Barometer (AUG) |
10 |
- |
-8 |
|
23:30 |
AUD |
AiG Performance of Manufacturing Index (AUG) |
45.3 |
- |
40.3 |
|
23:50 |
JPY |
Capital Spending (2Q) |
7.7% |
8.9% |
3.3% |
|
23:50 |
JPY |
Capital Spending excl Software (2Q) |
6.6% |
7.8% |
3.5% |
|
0:00 |
AUD |
RPData-Rismark House PX Actual (AUG) |
0.0% |
- |
0.6% |
|
0:30 |
AUD |
TD Securities Inflation (MoM) (AUG) |
0.6% |
- |
0.2% |
|
0:30 |
AUD |
TD Securities Inflation (YoY) (AUG) |
2.2% |
- |
1.5% |
|
1:00 |
CNY |
Non-manufacturing PMI (AUG) |
56.3 |
- |
55.6 |
|
1:30 |
AUD |
Company Operating Profit (QoQ) (2Q) |
-0.7% |
1.0% |
-3.7% (R+) |
|
1:30 |
AUD |
Inventories (2Q) |
0.6% |
0.2% |
1.3% (R+) |
|
1:30 |
AUD |
Retail Sales s.a. (MoM) (JUL) |
-0.8% |
0.2% |
1.2% (R+) |
|
1:30 |
AUD |
ANZ Job Advertisements (MoM) (AUG) |
-2.3% |
- |
-0.8% |
|
2:30 |
CNY |
HSBC Manufacturing PMI (AUG) |
47.6 |
- |
49.3 |
|
5:00 |
JPY |
Vehicle Sales (YoY) (AUG) |
7.3% |
- |
36.1% |
|
6:30 |
AUD |
RBA Commodity Price Index (AUG) |
- |
- |
95.8 |
|
6:30 |
AUD |
RBA Commodity Index SDR (YoY) (AUG) |
- |
- |
-9.8% |
Euro Session: What to Expect
|
GMT |
CCY |
EVENT |
EXP |
PREV |
IMPACT |
|
7:15 |
CHF |
Retail Sales - Real (YoY) (JUL) |
- |
3.7% |
Medium |
|
7:30 |
CHF |
SVME-Purchasing Managers Index (AUG) |
49.1 |
48.6 |
Medium |
|
7:45 |
EUR |
Italian PMI Manufacturing (AUG) |
45.0 |
44.3 |
Low |
|
7:50 |
EUR |
French PMI Manufacturing (AUG F) |
46.2 |
46.2 |
Low |
|
7:55 |
EUR |
German PMI Manufacturing (AUG F) |
45.1 |
45.1 |
Medium |
|
8:00 |
EUR |
Euro-Zone PMI Manufacturing (AUG F) |
45.3 |
45.3 |
Medium |
|
8:30 |
GBP |
PMI Manufacturing (AUG) |
46.1 |
45.4 |
Medium |
Critical Levels
|
CCY |
SUPPORT |
RESISTANCE |
|
EURUSD |
1.2503 |
1.2647 |
|
GBPUSD |
1.5798 |
1.5916 |
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
