Aussie Dollar Sinks, Yen Gains as Risk Aversion Grips the Markets
- 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.
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|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%|
|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|
|CCY||Supp 3||Supp 2||Supp 1||Pivot Point||Res 1||Res 2||Res 3|
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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