Australian Dollar (AUD) Slips following Poor Chinese PMI
The Australian Dollar (AUD) fell yesterday after China’s manufacturing PMI unexpectedly slipped into contraction territory.
As the ‘Aussie’ often trades as a proxy for the Chinese economy, worries about weakness in China’s manufacturing sector dented AUD’s appeal.
Turning to today, another Chinese manufacturing PMI is due out. The Caixin survey, which covers private firms rather than state-owned entities, is forecast to improve, which may lift AUD.
New Zealand Dollar (NZD) Stumbles despite Strong Business Confidence
The New Zealand Dollar (NZD) tried to resist losses yesterday after a startling jump in business confidence lent the ‘Kiwi’ some support.
However, NZD eventually tracked lower as the market mood soured and the weak Chinese data weighed on the New Zealand Dollar.
This morning, the ‘Kiwi’ could continue to be influenced by the latest unemployment rate. Risk appetite may then drive NZD through the remainder of the session.
Pound (GBP) Directionless amid Data Lull
The Pound (GBP) traded without a clear direction yesterday as a lack of UK economic data left the currency rudderless.
Sterling was also muted ahead of the upcoming Bank of England (BoE) interest rate decision as investors refrained from placing any aggressive bets.
With UK data still in short supply today, GBP may continue to trade in a wide range against its peers.
Euro (EUR) Sheds Gains as Inflation Cools
The Euro (EUR) initially ticked higher yesterday, with the single currency boosted by its negative correlation with a weakening US Dollar (USD).
However, the Euro trimmed its gains as the session went on. A USD rebound dented EUR, while a pullback in European Central Bank (ECB) rate hike bets following cooler inflation figures may also have weighed on the common currency.
Looking ahead, a lack of Eurozone data may see EUR trade on its USD correlation today.
US Dollar (USD) Rebounds as Risk Appetite Wanes
The safe-haven US Dollar fell during yesterday’s European session amid an initially risk-on market mood.
Sentiment then soured, allowing USD to make a strong comeback through the American trading hours.
Tonight, new US jobs data and the ISM manufacturing PMI are due out. Could a cooling labour market and contracting factory activity see USD struggle?
Canadian Dollar (CAD) Edges Lower as Oil Prices Wobble
The crude-linked Canadian Dollar (CAD) softened against its stronger rivals yesterday as oil prices wavered slightly lower.
Canada’s manufacturing PMI tonight could prompt further losses for CAD, with economists expecting to see a deepening contraction in the sector.
Data Calendar
Nov 1st 22:15 USD ADP Employment Change 150,000
Nov 1st 23:30 CAD Manufacturing PMI 47.2
Nov 2nd 00:00 USD ISM Manufacturing PMI (Oct) 49
Nov 2nd 00:00 USD JOLTs Job Openings (Sep) 9.25m