• Latest Chinese PMI data shows a slowdown in manufacturing
• Latest Australian CPI data indicates that there will be no upcoming rate rises
• The aggressive stimulus spending of the last 18 months is being reined in and this will soon start to show up in the economic data
• Possibility of a hung parliament after the August 21st election
• Taking a read from market positioning and technical analysis, I still favour a recovery in EUR/AUD back towards 1.60 but with EUR/USD starting to run out of bullish momentum, I expect the majority of this move to happen through a lower AUD/USD