Stockpair traders should keep an eye on these events today:
|AUD||Building Approvals (MoM)||2.5%||1.5%||-3.8%|
|AUD||Interest Rate Decision||2.50%||2.50%|
|AUD||RBA Rate Statement|
|USD||ISM Manufacturing Employment||58.4||58.2|
|USD||ISM Manufacturing PMI||56.8||57.1|
The New Month Starts Off Quietly for the Euro & The Yen
September 2, 2014
The euro and the Japanese yen started the new month quietly, as US markets were closed for the Labor Day holiday. The euro set a new correction low in the 1.3120 area this morning, but there were no follow‐through losses despite a disappointing EMU manufacturing PMI. Even so, the dollar remains well bid with yen dollar holding easily above 104 despite poor global eco data and ongoing tensions in Ukraine.
Chinese manufacturing PMI’s were reported marginally weaker than expected, suggesting an ongoing sluggish performance in the sector. As traders hopes for stimulus from the PBOC increased. Last week the central bank kicked off a mini stimulus program. Nevertheless, Chinese/Asian equities eked out moderate gains on hopes for further stimulus. On Tuesday morning there is little activity in the Asian markets with no clues from Wall Street overnight. Ongoing uncertainty on Ukraine and a decent bid for the dollar overall pushed euro lower in the 1.31 big figure, with the pair nearing the key 1.3105 support. The Japanese yen was again hardly affected by the Ukrainian tensions. The pair even regained the 104 barrier.
During the European morning trade, the EMU manufacturing PMI was revised slightly lower to 50.7. There was a broad‐based decline among most EMU member countries. Italy and France were even reported in contraction territory. The report supports the case for more ECB stimulus, but the impact on markets was limited. The euro stayed within reach of the correction low but a further decline didn’t occur. The absence of US investors apparently slowed the reaction to the data. USD/JPY remained well bid even as global economic news was disappointing. Tuesday morning saw a climb in Australia building permits while traders await word from Glenn Stevens and the RBA. The Aussie has declined to trade at 0.9292 while the kiwi 31 points to trade at 0.8344. Global sentiment seems to be shifting as the euro took a big tumble this morning to trade at 1.3119 and could break below the all-important 1.31 price. The US dollar seems set to climb over the 83price level for the first time in 2014. There is no Eurozone economic data on the calendar which leaves tensions in the Ukraine as the daily highlight.