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Chinese and Japanese markets were out on holidays today, but that didn’t stop traders from making pips rain for the pound and bringing pain to comdolls.

  • Japan and China’s markets out on holidays
  • Australia’s MI inflation gauge improves from 0.1% to 0.5%
  • China’s manufacturing PMI slips from 51.5 to 51.4 vs. 51.3 in April
  • China’s non-manufacturing PMI up from 54.6 to 54.8 in April
  • New Zealand’s ANZ business confidence drops from -20.0 to -23.4 in April
  • Australia’s private sector credit inches up from 0.4% to 0.5% in March

Major Events/Reports:

China’s PMI releases

China’s markets may have been closed due to Labor Day holiday, but that didn’t stop the China Federation of Logistics and Purchasing (CFLP) from printing PMI reports.

Turns out, the manufacturing PMI edged lower from 51.5 to 51.4 in April as exports growth slowed a bit. Non-manufacturing PMI improved from 54.6 to 54.8, though, marking its fastest growth since January as new orders and sentiment shot higher for the month.

Mixed market sentiment

The combination of strong earnings expectations; easing geopolitical concerns in the Korean peninsula, and anticipation of this week’s meeting between Trump’s guys and China’s delegates all contributed to a positive (but still thin) trading in the Asian bourses.

  • Australia’s A SX 200 is up by 0.39% to 5,974.1
  • Hang Seng is up by 1.51% to 30,738.8

All the optimism didn’t do the commodities any favors, however. There are no major catalysts for the moves, though some analysts point to dollar demand and a bit of cautiousness ahead of this week’s FOMC and NFP events.

  • Gold is down by 0.16% to $1,321.03
  • Brent crude oil is down by 1.42% to $73.45
  • U.S. WTI is down by 0.18% to $67.84

Major Market Mover(s):

Unfortunately for the Aussie, traders focused on the miss in China’s manufacturing report and highlighted the possible slowdown in the data releases.
AUD/USD is down by 15 pips (-0.20%) to .7565
AUD/JPY is down by 9 pips (-0.11%) to 82.57
AUD/CHF is down by 14 pips (-0.18%) to .7474
EUR/AUD is up by 32 pips (+0.20%) to 1.6030

There were no catalysts for the pound’s strength, though some market analysts pointed to some profit-taking from last week’s losses and a bit of positioning ahead of this week’s major events.

GBP/USD is up by 7 pips (+0.06%) to 1.3783
GBP/JPY is up by 24 pips (+0.16%) to 150.44
GBP/AUD is up by 53 pips (+0.29%) to 1.8220
GBP/CAD is up by 35 pips (+0.20%) to 1.7705
GBP/NZD is up by 39 pips (+0.20%) to 1.9478

Watch Out For:

  • RBA Governor Lowe to make a speech in Adelaide
  • 6:00 am GMT: Germany’s retail sales (0.8% expected, -0.7% previous)
  • 7:00 am GMT: Switzerland’s KOF economic barometer (105.9 expected, 106.0 previous)
  • 8:00 am GMT: Euro Zone’s private loans
  • 9:00 am GMT: Italy’s preliminary CPI (0.2% expected, 0.3% previous)