Global PMIs Due Over Next 24hrs
AUD
The Aussie Dollar sees marginal improvements against the majors with strong commodity performance helping push the AUD higher. Gold closed up 1.3%, Silver closed up 3.1%, Iron Ore up 0.9% and Copper 1.7%. Asian equites where soft into the close, with the ASX closing flat and the SHANGHAI COMP closing down 0.4%. Yesterday out of China we had their 1-y and 5-y loan prime rates, both came in as expected unchanged, with no notable news set to be released today. Locally The Australian economy has seen progressively slower growth since late 2022, with GDP growth virtually stalling in Q1 this year. Outside of the pandemic, growth in the year to Q1 2024 was its weakest since 1992 and per capita GDP has been in decline for 5 quarters. This is leading to the reluctance the RBA has to hike rates again despite stubbornly persistent inflation, but if Q2 inflation measures are above expectations, it may force their hand.
USD
The AUDUSD opens lower this morning to end the week, with the pair keeping in a tight range during the trading day, and slowly trailing off overnight, opening this morning at 0.6654. Wallstreet was mixed to into the close, with the DOW JONES up 0.8%, S&P 500 down 0.3% and the NASDAQ down 0.8%. To the news, the weekly Unemployment Claims came in 3k higher then the expected 235k, drown from the previous week’s 243k. Building Permits also came in lower, at 1.39m, with expectations of an increase from 1.44m to 1.45m. The Philly Fed Manufacturing Index came in much lower at 1.3, expected to increase to 4.8 from 4.5, notably this is the lowest rating since January. Treasury Currency Report came out earlier this morning, a biannual report on global exchange rate policies, notably the US has added Japan to their currency watchlist, having little effect on the Greenback. Tonight, to finish the week, Flash PMIs are to be released, both expected to slightly soften, with the Manufacturing going from 51.3 to 51 and Services to go from 54.8 to 53.4
EUR
The AUDEUR opens marginally higher this morning, with the pair grinding its way to another fresh 12-month high, opening this morning at 0.6217. European equities finished strong, with the DAX closing up 1% and the CAC up 1.3%. To the news, it was a slow day yesterday, with the German PPI m/m coming in lower at 0.0%, expected at 0.1%, previously at 0.2%. Tonight, is the most important for the week, with European PMIs set to be released. With both German and French Services and Manufacturing PMI’s expected to slightly increase, with their manufacturing still in a state of contraction, and their services in growth. PMIs for the Eurozone as a whole will follow and are expected to track along similar lines, showing great cause of concern in their manufacturing sector with many moths of consistent contraction.
GBP
The AUDGBP sees small gains over the past 24 hours, pushing through the 0.5250 barrier to reach a monthly high, opening this morning at 0.5258. British Equities finished in the green, with the FTSE closing up 0.8%. Last night they had their Official Bank Rate, coming in unchanged at 5.25% as expected, with the MPC Official Bank Rate Votes also remaining unchanged at 0-2-7, also as expected. Their Monetary Policy Summary was released keeping in with market’s expectations, with future markets expecting their first cuts to start to begin in their August meeting. The Brits finish their busy week with Retail sales m/m, expecting an increase of -2.3% to 1.6% and Flash Manufacturing and Services PMI’s both expected to marginally increase, from 51.2 to 51.3 and 52.9 and 53 respectively, showing strong signs that the British economy may finally be on the mend.
NZD
The AUDNZD opens this morning flat, with the pair having minimal movement since yesterday’s open, opening this morning at 1.0873. There was no news released yesterday an nothing for the rest of the week.