- China’s official PMI for November fell to 49.0, from 50.4 in October (any reading below 50 indicates contraction in the manufacturing industry).
- The market had expected an even worse number, with many ‘reasoning’ that yesterday’s 50bps cut in the RRR might indicate some poor economic numbers in the pipeline
- Australian retail sales +0.2% MoM (+0.4% expected)
- Australian building approvals -10.7% MoM
- South Korean November CPI +4.2% YoY
- New Zealand Terms of Trade index -0.7% QoQ
- Brazil cuts interest rates by 50 bps to 11%
- BOJ’s Shirakawa to travel to NY to attend G30 policymakers meeting
- Regional bourses +4% on average
- Gold $1750/oz; Oil $100.50/bbl
The AUD has again been the most volatile of the G10 currencies but will end the session almost unchanged. The early pressure was all to the downside with talk of a poor China PMI leading market sentiment. Lower than expected retail sales also spurred on the bears. After opening at 1.0265, AUD/USD initially fell to 1.0220, stalled initially after the China PMI as the market was already short, but picked up a second wind at lunchtime to break below 1.0200. Those losses were quickly reversed in the afternoon as higher equity markets favoured the risk-on pairs like AUD/JPY. Ranges: AUD/USD 1.0180/1.0289
EUR/USD has been surprisingly quiet after big overnight ranges. There has been no talk of flows or orders at all today in the EUR, although EUR/AUD did recover after some big losses overnight. Ranges: 1.3429/73
USD/JPY has been quiet again in a 77.49/74 range; there is increasing speculation that Japanese authorities will push for cooperation on intervention after last nights central bank cooperation.
Cable 1.5671/1.5717; USD/CHF .9122/50