Australian dollar (AUD) mixed amid Chinese manufacturing expansion
The Australian dollar (AUD) traded in a wide range against its peers on Monday following a surprise uptick in China’s latest Caixin manufacturing PMI.
Due to AUD’s status as a proxy currency for the Chinese economy, the ‘Aussie’ strengthened against some of its rivals following the upbeat release. However, a souring market mood later in the day served to offset the risk-sensitive Australian dollar’s upside potential.
Looking ahead, could an improving market mood lift the ‘Aussie’ today?
New Zealand dollar (NZD) subdued amid lull in data
The New Zealand dollar (NZD) struggled yesterday amid a lack of fresh domestic data and a deteriorating market sentiment.
Coming up, a data-light session could leave the ‘kiwi’ vulnerable to global risk dynamics today.
Pound (GBP) buoyed by manufacturing growth
The pound (GBP) held its ground on Monday evening following the release of the UK’s finalised manufacturing PMI.
The index confirmed that the key British sector grew at its fastest pace in over two years last month, helping to keep GBP afloat amid a lack of wider releases.
Turning to today, an absence of market-moving UK data could see investors look towards the British Retail Consortium’s latest retail sales gauge. Signs of increased UK consumer spending could lift the pound against its rivals this morning.
Euro (EUR) undermined by manufacturing slump
The euro (EUR) initially rose against some of its peers on Monday evening without a clear catalyst for the movement.
However, the single currency later retreated overnight as confirmation of continually weak manufacturing activity across the bloc soured EUR sentiment.
Tonight, a lack of fresh data from the Eurozone may leave movement in the euro to be dictated by the single currency’s negative correlation with the US dollar (USD).
US dollar (USD) fluctuates amid data-light calendar
The US dollar moved without a clear trajectory on Monday amid a lack of fresh US data.
As USD’s recent rebound came to a halt overnight, investors appeared reluctant to place any aggressive bets on the ‘greenback’ ahead of high-impact US data later in the week.
Looking ahead, the latest ISM manufacturing PMI is due for release overnight. Should the index remain in contraction territory, USD may struggle.
Canadian dollar (CAD) strengthens amid increased growth
The crude-linked Canadian dollar (CAD) faced headwinds on Monday despite a slight uptick in crude oil prices.
Today, movement in the ‘loonie’ may be influenced by the latest Canadian manufacturing PMI. Should the index remain in contraction territory, CAD may struggle to attract investor support.
Data releases
3rd Sep 09:01 GBP BRC Retail Sales Monitor (Aug) 0.8%
3rd Sep 22:00 EUR ECB Buch Speech
3rd Sep 23:30 CAD Manufacturing PMI (Aug) 48.5
4th Sep 00:00 USD ISM Manufacturing PMI (Aug) 47.5