- China’s flash PMI 49.8, up from 49.3 last time. Still exhibiting some contraction in the manufacturing industry but not as much as feared
- AUD and NZD rally after the data
- Stocks fell late in NY led by financials but Asia has ignored the lead with all regional bourses higher
- Gold makes another record high at $1911/oz and steadies then around $1900/oz
- Japan’s PM expected to resign in coming days
- FinMin Noda still watching Yen very closely for any signs of over speculation
- RBA Battelino: Australia’s fiscal position is very very good
It’s been an extremely quiet session again today with the market now waiting Bernanke’s Jackson Hole speech for any hint of QE3 and what it might involve.
The AUD has been the main mover but it was also stuck in a 10 pip range for much of the morning just below 1.0400. There were rumours of a poor PMI number which probably encouraged day traders to play from the short side. Talk of China buying dips no doubt encouraged the bulls. The better than expected PMI saw AUD/USD rally firstly to 1.0435, and then later to 1.0458 after tripping intraday stops. Ranges: 1.0382/1.0458
EUR/USD has been very quiet in a 1.4351/91 range with no news or flows of any consequence.
USD/JPY drifted higher in early trade as traders took the usual cheap bet that the BOJ might appear. When they didn’t, the buyers bailed out. Range: 76.70/93
Cable 1.6452/85; USD/CHF .7867/.7906