- Chinese official manufacturing PMI up from 51.0 to 51.7 in July
- HSBC July final manufacturing PMI revised from 52.0 to 51.7
- Japan’s final manufacturing PMI revised from 50.8 to 50.5
- BOJ Gov Kuroda: Easing is having the intended effect
- Australia quarterly PPI down by 0.1% instead of showing 0.7% gain
- Spanish and Italian manufacturing PMI due
- U.K. manufacturing PMI to fall from 57.5 to 57.2?
Not even the improvements in Chinese manufacturing PMIs were enough to keep the Aussie supported in today’s trading, as the currency got weighed down by the 0.1% decline in Australia’s quarterly PPI. Analysts had been expecting to see a 0.7% gain in producer price levels.
Meanwhile, China’s official manufacturing PMI climbed from 51.0 in June to 51.7 in July, reflecting a pickup in expansion. HSBC’s version of the report showed a downgrade from the initially reported 52.0 reading to 51.7, still indicating a healthy expansion nonetheless.
Over in Japan, the final manufacturing PMI reading for July was downgraded from 50.8 to 50.5. In his testimony today, BOJ Governor Kuroda reiterated that the central bank’s easing moves are having the intended effect and the impact of the sales tax hike will soon fade. Despite that, they are keeping their policy options open and will be ready to ease if needed.
After trading near the .9315 levels earlier in the session, AUD/USD is trading around 12 pips below the .9300 mark. NZD/USD was dragged down to an extent, as the pair dipped to a low of .8488. USD/JPY is struggling to make it past the 103.00 mark as it traded up to a high of 102.95 while AUD/JPY is holding steady above 95.50.
Other dollar pairs appear to be sitting tight ahead of the non-farm payrolls release during the U.S. session, but there are a few potential movers lined up in the next few hours. These are the manufacturing PMI reports from Spain, Italy, and the United Kingdom. U.K. manufacturing PMI is projected to fall from 57.5 to 57.2 and a larger drop could pave the way for more losses for the pound. Stay on your toes!
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