Talking Points:
- Aussie, Kiwi Dollars Rise as US Dollar and Yen Drop After Dismal US Jobs Data
- UK, US and Eurozone PMIs Roundup to Drive Risk Sentiment Trend Development
- See Economic News Releases Directly on Your Charts with the DailyFX News App
The Australian and New Zealand Dollars outperformed in overnight trade, rising alongside an advance on Asian stock exchanges. The optimism across regional bourses appeared to take its cues from Friday’s upward surge on Wall Street, a move triggered by the unwinding of Federal Reserve rate hike expectations following a dismal set of employment figures.
The US Dollar dutifully continued to decline as Asian markets adjusted to a prevailing outlook that now envisions the start of Fed stimulus withdrawal no sooner than March 2016. The surge in sentiment likewise weighed on the anti-risk Japanese Yen.
Looking ahead, the final round-up of September’s Markit PMI readings for the UK, US and the Eurozone are in focus. Soft readings may rekindle global slowdown fears, capping the overnight swell in risk appetite and rekindling support for funding currencies (Euro, Yen) at the expense of higher-yielding counterparts (notably in the commodity currency bloc).
S&P 500 futures are pointing lower in late Asian trade, bolstering the case for on-coming risk aversion. Follow-through may prove limited however if the markets continue to interpret weak activity data and its dovish implications for global monetary policy trends as sentiment-supportive.
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Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
|---|---|---|---|---|---|
| 22:30 | AUD | AiG Perf of Services Index (SEP) | 52.3 | - | 55.6 |
| 23:30 | AUD | TD Securities Inflation (MoM) (SEP) | 0.3% | - | 0.1% |
| 23:30 | AUD | TD Securities Inflation (YoY) (SEP) | 1.9% | - | 1.7% |
| 00:30 | AUD | ANZ Job Advertisements (MoM) (SEP) | 3.9% | - | 1.3% |
| 01:30 | JPY | Labor Cash Earnings (YoY) (AUG) | 0.5% | 0.6% | 0.9% |
| 01:30 | JPY | Real Cash Earnings (YoY) (AUG) | 0.2% | 0.5% | 0.5% |
| 01:35 | JPY | Nikkei Japan PMI Services (SEP) | 51.4 | - | 53.7 |
| 01:35 | JPY | Nikkei Japan PMI Composite (SEP) | 51.2 | - | 52.9 |
European Session
| GMT | CCY | EVENT | EXP | PREV | IMPACT |
|---|---|---|---|---|---|
| 07:00 | CHF | Total Sight Deposits (OCT 2) | - | 465.6B | Low |
| 07:00 | CHF | Domestic Sight Deposits (OCT 2) | - | 405.1B | Low |
| 07:45 | EUR | Italian Markit/ADACI Services PMI (SEP) | 54.1 | 54.6 | Low |
| 07:45 | EUR | Italian Markit/ADACI Composite PMI (SEP) | - | 55.0 | Low |
| 07:50 | EUR | French Markit Services PMI (SEP F) | 51.2 | 51.2 | Low |
| 07:50 | EUR | French Markit Composite PMI (SEP F) | 51.4 | 51.4 | Low |
| 07:55 | EUR | German Markit Services PMI (SEP F) | 54.3 | 54.3 | Medium |
| 07:55 | EUR | German Markit/BME Composite PMI (SEP F) | 54.3 | 54.3 | Medium |
| 08:00 | EUR | Eurozone Markit Services PMI (SEP F) | 54.0 | 54.0 | Medium |
| 08:00 | EUR | Eurozone Markit Composite PMI (SEP F) | 53.9 | 53.9 | Medium |
| 08:30 | GBP | Official Reserves Changes ($) (SEP) | - | 656M | Low |
| 08:30 | EUR | Eurozone Sentix Investor Confidence (OCT) | 11.8 | 13.6 | Low |
| 08:30 | GBP | Markit/CIPS UK Services PMI (SEP) | 56.0 | 55.6 | Medium |
| 08:30 | GBP | Markit/CIPS UK Composite PMI (SEP) | 54.9 | 55.1 | Medium |
| 09:00 | EUR | Eurozone Retail Sales (MoM) (AUG) | 0.0% | 0.4% | Medium |
| 09:00 | EUR | Eurozone Retail Sales (YoY) (AUG) | 1.7% | 2.7% | Medium |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
|---|---|---|---|---|---|---|---|
| EURUSD | 1.0893 | 1.1061 | 1.1138 | 1.1229 | 1.1306 | 1.1397 | 1.1565 |
| GBPUSD | 1.4965 | 1.5074 | 1.5129 | 1.5183 | 1.5238 | 1.5292 | 1.5401 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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