- 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
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.
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%).
- 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?
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!