Global PMIs Due Over Next 24hrs
AUD
The Aussie Dollar opens either lower or flat against the majors this morning, diving further due to China’s fragile economic outlook & extended deterioration in global risk sentiment. With Beijing delivering surprise interest rate cuts on Monday, China’s ongoing poor economic output has outweighed AUD strength that was driven by firm speculation over the Reserve Bank of Australia maintaining restrictive monetary policy for longest among economies. Investors also expect that the RBA could hike the Cash Rate further due to persistent inflationary pressures and a stable labour market, although recent weakened risk sentiment has delivered a hit to our local currency. Commodities saw a mixed performance yesterday with Gold +0.1%, Silver +0.3%, Iron Ore +0.8%, and Copper -0.8%. Asian equities also finished the day mixed, the Nikkei flat, Shanghai Comp -1.6%. Locally, the ASX gained +0.5%, driven by info tech and health care. No major local news set for release today with only Flash Manufacturing PMI, and Flash Services PMI earlier this morning. The Aussie manufacturing sector showed contraction, while the services sector expanded. No major local data for the remainder of the week.
USD
AUDUSD opens lower this morning hitting a 5-week low at 0.6612, despite US manufacturing activity in July worsening with the composite manufacturing index decreasing from -10 in June to -17 in July, and poor performing Existing Home Sales showing a -5.4% drop in June as median sales prices climbed to the highest price ever recorded for the second consecutive month. Wall Street closed in the red with the Dow Jones -0.1%, S&P 500 -0.2%, and the Nasdaq -0.1%. Out of the US tonight we will see their Flash Manufacturing PMI and Flash Services PMI, both of which are expected in expansionary territory. New Home Sales will follow with forecasts expecting an increase from 619K to 639K.
EUR
The AUDEUR coupling opens flat this morning at 0.6095 after what was quiet day on the data front with only Consumer Confidence being released, coming through as forecasted at -13. Eurozone equities closed mixed with the DAX +0.8% and the CAC -0.3%. Unlike yesterday, it will be a data heavy day for the Eurozone with Flash Manufacturing & Services PMIs for France, Germany and the Eurozone as a whole.
GBP
AUDGBP opens slightly lower this morning at 0.5123 following the trend of current AUD weakness. UK equities closed in the red with the FTSE -0.4%. We will see the UK Flash Manufacturing and Services PMIs set for release later this evening at 6:30pm. Both set for a slight increase with manufacturing forecast to increase to 51.1 from 50.9, and services forecast to increase from 52.5 from 52.1.
NZD
AUDNZD opens flat at 1.1104, maintaining a tight range in yesterday's session. No data from our Kiwi neighbors for the remainder of the week, with no data releases set until July 31 with their Building Consents m/m.