Article Highlights

  • Japanese traders out enjoying the holiday
  • China’s HSBC final manufacturing PMI for April downgraded from 49.2 to 48.9
  • Australian building approvals up 2.8% vs. estimated 1.7% decline for March
  • Australia’s ANZ job advertisements show 2.3% rebound in April
  • ANZ reported 7.4% decline in commodity prices for New Zealand in April
  • Euro zone final manufacturing PMI readings due
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Forex price action was as uneventful as the weekend’s Mayweather-Pacquiao boxing match, as the U.S. fighter – I mean, dollar – hesitated to throw any aggressive punches in the ring. Japanese traders are still off enjoying the holiday, which explains the lack of liquidity in the past few hours. USD/JPY is down 14 pips (-0.11%), EUR/USD is up 13 pips (+0.10%), and GBP/USD is up 22 pips (+0.14%).

Commodity currencies are slightly lower for the day, after HSBC reported a downgrade in its final Chinese manufacturing PMI for April from 49.2 to 48.9, reflecting a sharper contraction in the industry. The Aussie managed to stay afloat, thanks to the stronger than expected 2.8% increase in building approvals for March and the 2.3% rebound in ANZ job advertisements for April. The Kiwi, on the other hand, gapped down against its forex counterparts and proceeded to edge lower after ANZ printed a 7.4% decline in New Zealand’s commodity prices for April.

Up ahead, the forex calendar shows that the euro zone has its final manufacturing PMI readings due from its top economies. The region’s final manufacturing PMI reading for April is also up for release and no change is expected from the initially reported 51.9 figure.

U.K. banks are on holiday today, which means that liquidity is also expected to be thin in the next few hours. Do stay tuned for any updates on the upcoming U.K. elections and any updates on the Greek debt situation, as these could spark strong volatility in the financial markets.


U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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