Talking Points:
Aussie Dollar Down, Yen Higher as Chinese PMI Compounds Risk Aversion
S&P 500 Futures Point to Respite in Market Liquidation into the Week-End
See Economic Releases Directly on Your Charts with the DailyFX News App
Risk aversion defined currency market price action in overnight trade. The sentiment-linked Australian Dollar underperformed while the Japanese Yen rallied as traders unwound carry trades funded in terms of the perennial low-yielder. Asian stock exchanges are on pace for the worst week since 2012, with the MSCI Asia Pacific regional benchmark index recording a drop of over 2 percent.
Continued turmoil in the emerging markets space and strong negative carry-over from a dismal US trading session were compounded by a disappointing Chinese Manufacturing PMI figure. The index dropped to 47.1 in August, missing expectations calling for a print at 48.2 and pointing to the fastest pace of factory-sector contraction in at least three years (records go back to August 2012).
Looking ahead, S&P 500 index futures have notably recovered after hitting a six-month low in early Asian trade, suggesting sentiment may stabilize into the week-end and offer a brief respite from market-wide liquidation. Augusts’ preliminary US Manufacturing PMI print headlines the economic calendar. Consensus forecast call for the index to register at 53.8, unchanged from the prior month.
New to FX? START HERE!
Asia Session
GMT
CCY
EVENT
ACT
EXP
PREV
22:45
NZD
Net Migration SA (JUL)
5740.0
–
4900.0
01:35
JPY
Nikkei Japan PMI Mfg (AUG P)
51.9
–
51.2
01:45
CNY
Caixin China PMI Mfg (AUG P)
47.1
48.2
47.8
03:00
NZD
Credit Card Spending (MoM) (JUL)
1.7%
–
0.3%
03:00
NZD
Credit Card Spending (YoY) (JUL)
9.7%
–
6.6%
05:00
JPY
Supermarket Sales (YoY) (JUL)
1.9%
–
0.3%
European Session
GMT
CCY
EVENT
EXP/ACT
PREV
IMPACT
06:00
EUR
German GfK Consumer Conf (SEP)
9.9 (A)
10.1
Low
07:00
CHF
Money Supply M3 (YoY) (JUL)
1.9% (A)
2.1%
Low
07:00
EUR
Markit France Composite PMI (AUG P)
51.3 (A)
51.5
Low
07:00
EUR
Markit France Mfg PMI (AUG P)
48.6 (A)
49.6
Low
07:00
EUR
Markit France Mfg PMI (AUG P)
51.8 (A)
53.8
Low
07:30
EUR
Markit/BME Germany Composite PMI (AUG P)
54.0 (A)
53.7
Medium
07:30
EUR
Markit/BME Germany Mfg PMI (AUG P)
53.2 (A)
51.8
Medium
07:30
EUR
Markit Germany Services PMI (AUG P)
53.6 (A)
53.8
Medium
08:00
EUR
Markit Eurozone Composite PMI (AUG P)
54.1 (A)
53.9
Medium
08:00
EUR
Markit Eurozone Mfg PMI (AUG P)
52.4 (A)
52.4
Medium
08:00
EUR
Markit Eurozone Services PMI (AUG P)
54.3 (A)
54.0
Medium
08:30
GBP
Public Finances (PSNCR) (JUL)
-3.0B (A)
15.4B
Low
08:30
GBP
Central Government NCR (JUL)
-0.2B (A)
17.8B
Low
08:30
GBP
Public Sector Net Borrowing (JUL)
-2.1B (A)
8.6B
Low
08:30
GBP
PSNB ex Banking Groups (JUL)
-1.3B (A)
9.4B
Low
Critical Levels
CCY
Supp 3
Supp 2
Supp 1
Pivot Point
Res 1
Res 2
Res 3
EURUSD
1.0922
1.1060
1.1151
1.1198
1.1289
1.1336
1.1474
GBPUSD
1.5474
1.5570
1.5630
1.5666
1.5726
1.5762
1.5858
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya’s analysis directly via email, please SIGN UP HERE
Contact and follow Ilya on Twitter: @IlyaSpivak
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.Learn forex trading with a free practice account and trading charts from FXCM.
Source: Daily fx