With much of Asia on holiday today it could well be a range-bound session for AUD. The market will be closely focused on the Chinese manufacturing PMI due at 0100GMT. Expectations are for a 50.7 reading, which would indicate continued manufacturing expansion, albeit at a slow pace. Anything less than 50 is going to be read as short-term bearish for AUD and we should see a test lower, a reading above 50, though should keep AUD supported on the day.
Other data to be released today is not of major importance: AIG Performance of Manufacturing Index, RPData-Rismark House Prices, HIA New Home Sales. The RBA’s Malcolm Edey speaks later, though its expected he will confine himself to regulatory issues (he speaks on The Financial Stability Role of Central Banks to the Thomson Reuters Regulatory Summit, Sydney; there may be something of interest, though, in any Q&A that might follow the speech).
- Offers are in the market from 1.0390 through 1.0405, then again from 1.0420/25.
- Bids 1.0335/45 initially then 1.0300/10 down through 1.0280
