Talking Points
- Dollar, Yen Rise on Disappointing Australian and Chinese Economic Data
- Eurozone PMI Revisions May Raise the Stakes for ECB Policy Announcement
The US Dollar and Japanese Yen rose overnight as stocks declined, boosting demand for the go-to haven currencies. The MSCI Asia Pacific regional benchmark equity index fell 1 percent amid global slowdown fears in the wake of disappointing economic data. Australian GDP figures showed output grew 0.6 percent in the second quarter, missing expectations of a 0.7 percent increase. Separately, the AiG Performance of Services gauge showed the non-manufacturing sector contracted at the fastest pace in four months. Meanwhile, the analogous HSBC Services PMI fell to the lowest level in a year.
Final revisions of Augusts’ Eurozone Services PMIs headline the European economic calendar. Key Manufacturing PMI readings were revised lower in the week. More of the same on the service-sector components may point to a deeper slowdown in regional activity, reinforcing hopes for additional stimulus to emerge at Thursday’s ECB rate decision. As we discussed in our weekly forecast, a policy announcement that focuses exclusively on outlining operational details of the central bank’s new bond-buying scheme without offering anything on the growth front may weigh on the Euro and risky assets in general.
Asia Session: What Happened
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
22:45 |
Value of All Buildings s.a. (2Q) |
0.8% |
3.0% |
-0.4% |
|
23:01 |
BRC Shop Price Index (YoY) (AUG) |
1.1% |
- |
1.0% |
|
23:30 |
AiG Performance of Service Index (AUG) |
42.4 |
- |
46.5 |
|
1:30 |
AUD |
GDP (QoQ) (2Q) |
0.6% |
0.7% |
1.4% (R+) |
1:30 |
AUD |
GDP (YoY) (2Q) |
3.7% |
3.7% |
4.4% (R+) |
2:30 |
CNY |
HSBC Services PMI (AUG) |
52.0 |
- |
53.1 |
Euro Session: What to Expect
GMT |
CCY |
EVENT |
EXP |
PREV |
IMPACT |
7:15 |
CPI (MoM) (AUG) |
0.1% |
-0.5% |
Medium |
|
7:15 |
CHF |
CPI (YoY) (AUG) |
-0.4% |
-0.7% |
Medium |
7:15 |
CHF |
CPI - EU Harmonised (MoM) (AUG) |
- |
-0.3% |
Low |
7:15 |
CHF |
CPI - EU Harmonised (YoY) (AUG) |
- |
-0.8% |
Low |
7:45 |
EUR |
Italian PMI Services (AUG) |
43.3 |
43.0 |
Low |
7:50 |
EUR |
French PMI Services (AUG F) |
50.2 |
50.2 |
Low |
7:55 |
EUR |
German PMI Services (AUG F) |
48.3 |
48.3 |
Medium |
8:00 |
EUR |
Euro-Zone PMI Services (AUG F) |
47.5 |
47.5 |
Medium |
8:00 |
EUR |
Euro-Zone PMI Composite (AUG F) |
46.6 |
46.6 |
Medium |
8:30 |
GBP |
Official Reserves (Changes) (AUG) |
- |
$528M |
Low |
9:00 |
EUR |
Euro-Zone Retail Sales (MoM) (JUL) |
-0.2% |
0.2% |
Medium |
9:00 |
EUR |
Euro-Zone Retail Sales (YoY) (JUL) |
-1.7% |
-1.0% |
Medium |
Critical Levels
CCY |
SUPPORT |
RESISTANCE |
1.2437 |
1.2611 |
|
1.5829 |
1.5900 |
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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