Article Highlights

  • Japanese Tankan manufacturing index down from 15 to 12
  • Japanese Tankan non-manu index up from 23 to 25
  • Chinese official manu PMI up from 49.7 to 49.8 in Sept
  • Chinese official non-manu PMI unchanged at 53.4
  • Chinese Caixin final manu PMI upgraded from 47.0 to 47.2
  • Chinese markets closed for a week-long holiday
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Talk about starting the new month with a bang! China and Japan unloaded a bunch of top-tier reports in today’s Asian forex trading session, allowing higher-yielding currencies to advance. Tankan survey results from Japan came in mixed, with the manufacturing index falling from 15 to 12 and the non-manufacturing index climbing from 23 to 25.

USD/JPY is up 28 pips to 120.15 (+0.24%), EUR/JPY is flat at 134.00 (0.00%), GBP/JPY is up 46 pips to 181.80 (+0.25%), and CAD/JPY is up 24 pips to 90.27 (+0.26%).

The Australian dollar rejoiced upon seeing the Chinese PMI readings for September, as the official manufacturing PMI ticked up from 49.7 to 49.8 and the non-manufacturing PMI held stead at 53.4. Meanwhile, the Caixin final manufacturing PMI for the same month saw an upgrade from 47.0 to 47.2. Chinese markets are closed for a week-long holiday, though, which means that we won’t be seeing any reaction from their equity indices for the next few days.

AUD/USD is up 37 pips to the .7050 levels (+0.53%), AUD/JPY has been one of the best performers and is up 64 pips to 84.73 (+0.76%), NZD/USD is up 10 pips to .6405 (+0.06%), and NZD/JPY is up 24 pips to 76.94 (+0.33%).

More PMI readings are set to be printed in the next few hours, with Spain and Italy set to print their manufacturing surveys. Germany and France are also set to release their final manufacturing PMI readings from September, although not much changes are expected. The pound could enjoy more forex volatility with the U.K. manufacturing PMI coming up at 9:30 am GMT and likely to show a dip from 51.5 to 51.3, reflecting a slowdown in industry expansion.

U.S. Session Recap

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