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.
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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
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