Global PMI Weakness Lends a Hand to AUD

AUD

The AUD is up across the board today after Iron Ore gained further ground, as well as weaker-than-expected foreign PMI data spurring weakness from the major currencies. Looking to local data, the Australian Flash Manufacturing PMI came in essentially flat at 49.4, and the Services PMI came in slightly worse than expectation at 46.7. The ASX saw modest gains of 0.4%. No domestic data for the rest of week, while next Wednesday we'll see CPI figures.

USD

The AUDUSD gained 0.8% in the overnight session off the back of some worse than expected PMI data from the US, currently sitting at 0.6481. Flash Manufacturing for the US missed its 48.9 expectation and landed at 47. Flash Services came in at 51 vs 52.1 expectation, raising concens about growth prospects in the current US business climate. Markets read this as a negative sign for the US dollar and a small sell off occurred. This was despite New Home Sales coming in above expectation at 714K, well up from last months 684K. The main piece of upcoming data for the US is the Unemployment Claims tonight.

EUR

Continuing the prior night’s trend, last night saw a further rally in the AUDEUR, landing at 0.5964. A slew of PMI data out of Eurozone countries came in predominantly worse than expected. The entire Eurozone saw a slight increase on their Manufacturing PMI coming in at 43.7 vs 42.8 expectation, and Services saw a 48.3 vs a 50.6 expectation. Consumer Confidence for the EU also came in below expectation, coming in at an indexed number of -16, vs -15 expectation. The next major piece of data is tomorrow night with the German ifo Business Climate.

GBP

The Aussie is up over 1% against the Pound, after worse than expected PMI data from the UK helped spur a rally, currently sitting at 0.5094. UK Flash Manufacturing came in worse than expectation at 42.5, vs 45.1 expectation, and Services PMI came in at 48.7, vs 50.9 expectation. Two massive misses caused Pound weakness across the board. Later tonight, we have CBI realized sales from the UK.

NZD

Gains were made against the Kiwi overnight also, with the Aussie pushing the NZD back 41bps. The current rate is 1.0845. No data out from New Zealand for the rest of the week.