- New Zealand terms of trade index falls 2.6% suffers biggest drop in three years .
- S.Korea August CPI rose 1.2% , core CPI rose 1.3% at 12-year low, possible rate cut later next week.
- UK Lloyds August business barometer index rose to 10 from a prior -8.
- UK Manufacturing output falling in 3 qtr vs. 2nd qtr -MNI
- Japan 2nd qtr capital spending rose 7.7 % y/y rose 6.6 y/y excluding software .
- S. Korea HSBC August manufacturing PMI rises to 47.5 from 47.2 , index under 50 for the 3rd month in a row. More reason to ease .
- Australia August inflation gauge rose 0.6% m/m , rose 2.2 y/y , within RBA target range .
- China August Non-Manufacturing PMI rises to 56.3 from 55.6 , improvement in construction and retail services being cited.
- China steel industry PMI fell to 39.9 in August from 44.5 in July .
- Australia July Retail Sales fell 0.8% , very disappointing number with forecast calling for a rise of 0.2 %.
- ANZ August job advertisements fell 2.3% in August .
- Australia 2nd qtr. company operating profits fell 0.7% again very disappointing with forecast of a 1.0% rise.
- Taiwan August PMI falls to 46.1 from 47.5 in July , joins the falling PMI club .
- New Zealand Treasury says economy probably grew 0.6% in 2nd qtr. and growth may exceed the 2.2% forecast for 2012 .
- HSBC August manufacturing PMI falls to 47.6 from July 49.3 . Continued contraction of both output and new orders while manufactures cut prices to compete for business.
- Today brings you a global PMI day as 17 countries report -BI
The dollar is consolidating around Fridays closing levels with the exception of both the AUD/USD and NZD/USD . All eyes and ears will be focused on what ECB President Mario Draghi has up his sleeve later this week . There is sure to be considerable jaw-boning before Thursday’s ECB meeting to keep things interesting .The U.S employment release on Friday will give us some indication on what the Fed might do the following week . So it becomes a wait and see game all over again .
- EUR/USD range bound between 1.2557 low and high 1.2587 . Resistance up above 1.2620 with bids coming in at 1.2540/50 .
- USD/JPY tested lower most of the session reaching support here at 78.20/25. Talk of bids again at 78.00/10 with stops through 77.90 . Topside offers starting at 78.60 mixed with stops through to 79.00. Narrow range of 78.43 to 78.20 with most of the movement coming on cross JPY trading .
- AUD/USD was the highlight of the session opening down 45 pips from Friday’s close at 1.0280/90 reaching an early low of 1.0267/72 on the China PMI number dropping to 49.2 . After some consolidation around 1.0270 , AUD/USD dropped to session lows of 1.0240 on their surprisingly weak retail sales and company operating profits. The HSBC manufacturing PMI showed a drop to 47.6 (the flash was 47.8) but didn’t cause a dramatic sell off as now hopes for more stimulus out of China is expected. Key support comes in at 1.0210/20 with offers up at 1.0290 through to 1.0300.
Good Luck Today .
