Article Highlights

  • China’s markets closed for Labor Day holiday
  • Australia’s MI inflation gauge up from 0.0% to 0.1% in April
  • Australia’s NAB business confidence index down from 6 to 5 in April
  • Japan’s final manufacturing PMI up from 48.0 to 48.2 vs. 48.0 expected
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Trading volatility was as tight as Captain America’s shirtsleeves during the Asian session, as a lack of fresh catalysts kept most forex traders in the sidelines.

Major Events:

Australia’s data releases – The Land Down Under printed its inflation and business confidence reports today. The MI inflation gauge stayed subdued at 0.1% in April despite the rise in oil prices. Meanwhile, the NAB business confidence slipped from 6 to 5, which is still mostly in line with optimistic outlook in the near-term.

JPY strength weighs on Nikkei – Nikkei traders were out on Showa Day holiday last Friday, so it’s no surprise that they woke up to carnage today. Last week’s dollar weakness, USD/JPY hitting an 18-month low today, and China’s less-than-stellar PMIs over the weekend all contributed to an overall risk-averse trading environment.

Nikkei is down by 3.35%, Australia’s ASX is down by 0.28%, the Shanghai index is down by 0.26%, and Hang Seng is down by 1.50%. Yipes!

Weaker oil prices – The Black Crack slid down the charts following reports of rising oil production from the Middle East outweighing the decline in U.S. oil output. The risk-averse environment didn’t help either. Brent oil is down by 1.06% to $46.88 while U.S. oil is also down by 0.81% to $45.55.

Major Currency Movers:

JPY – The low-yielding yen was unstoppable as USD/JPY fell to an intraday low of 106.22 while EUR/JPY also visited a low of 121.74 and GBP/JPY dropped to 154.90.

AUD – The Aussie started the session on a weak note thanks to China’s lacklustre PMIs, but it soon recovered ground as traders prepared for the RBA’s monetary policy decision tomorrow.

AUD/USD is up by 18 pips (+0.24%), AUD/JPY is up by 26 pips (+0.32%), and AUD/NZD is up by 29 pips (+0.27%).

Watch Out For:

  • U.K. markets out on May Day holiday
  • 7:15 am GMT: Swiss retail sales (0.3% expected vs. -0.2% previous)
  • 7:15 am GMT: Spain’s manufacturing PMI (53.0 expected vs. 53.4 previous)
  • 7:30 am GMT: Swiss manufacturing PMI (53.6 expected vs. 53.2 previous)
  • 7:45 am GMT: Italy’s manufacturing PMI (54.1 expected vs. 53.5 previous)
  • 7:50 am GMT: France’s manufacturing PMI expected to remain at 48.3
  • 7:55 am GMT: Germany’s manufacturing PMI expected to remain at 51.9
  • 8:00 am GMT: Euro Zone’s final manufacturing PMI expected to remain at 51.5
  • 9:30 am GMT: German BuBa President Weidmann to give a speech. Will the ECB get any mention?

See more:

U.S. Session Forex Recap

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