Global Manufacturing & Services Sectors in Focus

AUD
Minimal market-moving data over the past 24 hours sees the AUD open flat against most major currencies (a little lower against the Pound). Asian equities ended the day mostly lower with the Nikkei and Shenzhen both -0.3%, and the Hang Seng -0.7%. The ASX pushed modestly higher +0.2%. Commodities were mixed yesterday with Crude Oil -1.8%, Natural Gas -3.1% Iron Ore -0.4%, Copper +0.9%. Gold and Silver both +0.2%. This morning, we had Australia's Flash Manufacturing PMI and Flash Services PMIs released. Our manufacturing sector continues to contract for the seventh straight month, albeit at a slower pace, with the headline figure at 48.7 (previously 47.5). The services sector expanded further, released at 52.2 (previously 50.4). This indicated that the rise in services output further extended the sequence of expansion that began in February, with activity increasing at the fastest pace since April. We have no major Aussie of Chinese data ahead of the important domestic CPI release next Wednesday morning.
 

USD

AUDUSD opens flat this morning at 0.6752, not too far off 0.6760 highs seen overnight with minimal market moving data. The FOMC Meeting Minutes were released overnight with little surprises. They point to a ‘likely’ rate cut from the Fed in September, stating “The vast majority observed that if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting.” Markets were already pricing in 100% odds of a cut at the Fed's next meeting. Wall St. closed higher overnight with the Nasdaq posting gains of +0.6%, the S&P 500 +0.4%, and the Dow Jones +0.1%. A big night of data out for the US tonight with Unemployment Claims, Flash Manufacturing PMI and Flash Services PMI.
 

EUR

AUDEUR opens flat this morning at 0.6054, seeing lows of 0.6040 overnight after a quiet data session for the Eurozone. European equities opened higher, with CAC and DAX both +0.4%. The EUR has a busy night tonight with Flash PMIs for France, Germany and the Eurozone as a whole, expected to provide insight into their manufacturing and services sectors. Europe's manufacturing sector is expected to have contracted further, while the services sector is forecasted to have expanded. We'll also see Meeting Minutes from the European Central Bank's (ECB) most recent meeting.
 

GBP

AUDGBP opens lower at 0.5155 after dropping 11 points to 0.5150 in 1-hour last night, then leveling off this morning. Public Sector Net Borrowing came out higher than expected at 2.2B. UK equities posted healthy gains with the FTSE +0.4%. Tonight, Flash Manufacturing PMI and Flash Services PMI and CBI Industrial Order Expectations. Manufacturing and Service PMIs are both forecasted to have expanded.
 

NZD

AUDNZD opens up flat this morning at 1.0954 after a quiet trading session yesterday. The Kiwis had GDT Price Index come out above previous at 5.5% from 0.5% yesterday morning. Today is quiet, with no data set for release. Tomorrow, they have Retail Sales q/q and Core Retail Sales q/q. Both are expected to have softened.