Flash PMIs Take Centre Stage

AUD

The Aussie Dollar opens minorly lower against most majors with our local Flash Purchasing Manager Indices (PMIs) slightly underperforming expectations. The data showed business activity growth softened at the end of the third quarter, driven by a slower rise in new orders, attributed partly to a renewed fall in export orders. The Manufacturing PMI printed at 51.6 (prev. 53.0) and the Services PMI printed at 52.0 (prev. 55.8). Asian equities ended the day mixed, Nikkei +1%, Shenzhen +0.5% and Hang Seng -0.8%. Locally the ASX 200 climbed +0.4% as materials and health care sectors lead the pack at +2.6% and +0.6% gains. Chinese 1- and 5-year loan Prime Rates were held yesterday, as expected, at 3% and 3.5% respectively. Locally, RBA’s Michelle Bollock spoke on volatile jobs data, with employment growth slowing despite steady unemployment. She said demand has been a little higher than the central bank's prior forecasts, firming up expectations that the RBA is less than 2 cuts away from the terminal rate. Today, Aussie Flash Manufacturing PMI and Flash Services PMI out at 9am, expected at 53.0 and 55.8 respectively. No major data out of Asia.
 

USD

AUD/USD opens flat at 0.6598, off the back of little to no data from both parties. Wall St. closed higher with the Dow +0.1%, Nasdaq +0.7% and the S&P 500 +0.4% amidst a relatively quiet session. Plenty of Fed speakers this week will clarify the FOMC's policy view after Fed Chair Powell's cautious remarks last week. The dot plot signals two more interest rate cuts in the U.S. by year-end. Today, Flash Manufacturing PMI and Flash Services PMI expected weaker at 52.2 and 54.0, previously at 53.0 at 54.5 respectively. Fed Chair Powell will also be speaking on the economic outlook. This week, Final GDP q/q and Unemployment Claims on Thursday are what to watch for to round out the week in the US.
 

EUR

AUD/EUR opens trading weaker slightly at 0.5591, losing roughly 25 basis points from yesterday's open. European equities closed with the DAX down -0.5% and the CAC following suit down -0.3%. Eurozone Flash PMIs on the data calendar tonight. On Wednesday, German IFO Business Climate data and on Thursday, Swiss Interest Rate decision, expected to hold rates flat at 0.00%.
 

GBP

AUD/GBP opens the similarly at 0.4882, a little lower against yesterday's open. The FTSE is up minorly at 0.1%. Alike the rest of the world the UK have their Flash Manufacturing PMI and Flash Services PMIs expected mixed at 47.1 and 53.4 previously 47 and 54.2 respectively.
 

NZD

AUD/NZD opens weaker down roughly 20 basis points at 1.1243 from yesterday's open. There is no currency impacting data out of New Zealand this week. Their next data point being Tuesday next week when we see their ANZ Business Confidence.