Currency Updates:
U.S. Dollar Trading (USD) holiday affected trade saw subdued trading in the US session but the EUR/USD did have another attempt at 1.2600 with risk appetite remaining strong in Europe. There is a heavy slate of data releases this week from the US ending with August Non Farm Payrolls. Looking ahead, August ISM Manufacturing forecast at 50.0 vs. 49.8 previously.
The Euro (EUR) the EUR/USD retested resistance above 1.2600 overnight but failed to hold above the level in light trading with some profit taking near the top. The outlook is positive with traders only reacting to positive news from the Eurozone lately whilst ignoring the negative.
The Japanese Yen (JPY) had a very quiet open although still weak the USD/JPY remained under pressure falling to Y78.15 by the close of US trade. The EUR/JPY was steady but once again the AUD/JPY fell with the recent slowdown in China directly affecting the Aussie cross.
The Sterling (GBP) the GBP/USD rubbed against the 1.5900 level for most of the day overnight with risk on trade and positive sentiment. The manufacturing PMI from the UK overnight was very strong at 49.5 vs. 46 forecast. Looking ahead, Switzerland Q2 GDP forecast at 0.2% vs. 0.7% previously. Also EU July PPI Output forecast at 0.2% vs. -0.5%.
Australian Dollar (AUD) the Aussie hit fresh downtrend lows near 1.0240 before a small rally with the EUR/USD strength helped the AUD/USD range trade for the rest of the day. The RBA meet today and although they are not expected to cut they may be dovish as the recent month has seen concerns regarding China’s slowdown intensify. Looking ahead, RBA Meeting forecast to hold at 3.5% with focus on the Statement.
Oil & Gold (XAU) Held on to gains and crept higher to $1695 before consolidated in quiet US trade. OIL/USD resumed its uptrend breaking above $97 in late US trade.
