- Japanese motor vehicle sales down by 9.1% y/y in Aug
- Japanese capital spending up by 3.0% in Q2 vs. estimated 3.8% gain
- Nikkei up by 0.34% for the day
- Chinese official manufacturing PMI down from 51.7 to 51.2 in Aug
- Chinese HSBC final manufacturing PMI revised from 50.3 to 50.2
- Australias company operating profits down by 6.9% in Q2
- Spanish, Italian, Swiss, and U.K. manufacturing PMI due
Way to go, Greenback! The U.S. currency continued to advance against most of its forex counterparts in todays Asian trading session, as traders priced in expectations for this weeks top-tier events. EUR/USD has dipped to a low of 1.3117 while USD/JPY is testing the previous week highs near 104.20.
Data in Japan has been weaker than expected, prompting market participants to speculate about BOJ action later on this week. Japanese motor vehicle sales chalked up an annualized 9.1% drop in August while capital spending showed a weaker than expected 3.0% gain in Q2 versus the projected 3.8% increase. Despite these, the Nikkei managed to close with a 0.34% gain for the day.
Over in the Land Down Under, data also fell short of expectations, as company operating profits chalked up a massive 6.9% loss for the second quarter of the year instead of showing the estimated 1.8% decline. Apart from that, the previous periods reading was downgraded from 3.1% to 2.0%.
AUD/USD managed to make a small recovery in the past few hours though, as Chinese manufacturing PMI readings didnt turn out so bad. The official manufacturing PMI dipped from 51.7 to 51.2 in August while the HSBC final manufacturing PMI suffered only a tiny downgrade from 50.3 to 50.2 in the same month. AUD/JPY is continuing its ascent past the 97.00 resistance, as it reached a high of 97.34 in the past few hours.
Its all about manufacturing PMIs in todays London trading session, as several European economies are gearing up to release their survey results. In the euro zone, Spanish and Italian PMIs are due, with both slated to show small declines. Swiss SVME PMI is also up for release and it is slated to dip from 54.3 to 53.8 while the U.K. manufacturing PMI could fall from 55.4 to 55.1. Stronger than expected readings, however, might lead to currency rallies so yall better keep your eyes and ears peeled!
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