- Chinese official manufacturing PMI down from 50.2 to 50.0 in July
- Chinese official non-manu PMI down up from 53.8 to 53.9 in July
- Markit’s Chinese manu PMI down from 48.2 to 47.8 in July
- Australia’s ANZ job advertisements down by 0.4% in July
- Japan’s final manu PMI downgraded from 51.4 to 51.2
- Euro zone final manufacturing PMIs and UK manu PMI due
Is this the calm before the storm? Forex pairs are treading carefully at the start of this week, as traders are figuring out their strategies for the upcoming top-tier events. Over the weekend, China printed its official manufacturing and non-manufacturing PMI readings which were able to meet expectations. The manufacturing PMI fell from 50.2 to 50.0 in July while the non-manufacturing PMI improved from 53.8 to 53.9. Well, at least that’s what the Chinese government says.
According to the financial researchers at Markit, the manufacturing PMI fell from 48.2 to 47.8 in July, reflecting a sharper contraction in the industry. Components of their report revealed that new work and export orders declined, leading to a downturn in production for the month.
AUD/USD is holding steady around the .7250 minor psychological level at the moment and AUD/JPY is up 9 pips around 90.50 (+0.09%). Despite mixed reports from China, the Aussie managed to stay afloat due to some improvements in Australia’s medium-tier reports. The AIG manufacturing index climbed from 44.2 to 50.4 while the MI inflation gauge picked up from 0.1% to 0.2%. However, ANZ reported a 0.4% decline in job advertisements for June, hinting at a potential downside surprise in the upcoming employment release.
The London session will still be all about manufacturing PMI readings, as the euro zone’s top economies are set to release their final figures for July. Upward revisions could allow the shared currency to regain ground, even as the IMF’s refusal to get on board with the third Greek bailout has kept the euro’s gains in check.
The U.K. is also set to release its June manufacturing PMI at 9:30 am GMT and might show an increase from 51.4 to 51.6, indicating a stronger pace of expansion in the industry and possibly giving the pound an additional boost against its forex rivals.
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