Forex Today: AUD unperturbed by RBA, UK PMI, EZ GDP on tap

Forex today was driven by a minor corrective rally witnessed in the US dollar across the board, after yesterday’s extensive slide fuelled by renewed US political jitters. In Asia today, the Euro and GBP consolidated near multi-month highs versus USD, while the Aussie witnessed two-way trades on the back of solid Chinese Caixin manufacturing PMI release and RBA policy outcome. The Kiwi was the worst performer across the fx board, while the Yen remained better bid, despite downbeat Japan’s manufacturing PMI report.

Main topics in Asia

Japanese manufacturing sector expands at slower rate as growth in exports falters

The headline Japan Manufacturing Purchasing Managers’ Index came-in at 52.1 in July vs. 52.4 in June. This was the eleventh straight month of improvement in operating conditions.

China's July Caixin PMI surprises positively, at 4-month highs

China Caixin Manufacturing PMI for July came at 51.1 vs. 50.4 exp and 50.4 last, with Caixin's summary noting that both output and new orders rose at the fastest rates since February.

RBA keeps rates on-hold, higher AUD to continue to weigh on price pressures

The RBA left its Official Cash Rate (OCR) unchanged at a record low of 1.5% at its monetary policy meeting held today.

US officials: North Korea can hit most of US - RTRS

Reuters citing two US officials, discussed on condition of anonymity, North Korea's latest test of an intercontinental ballistic missile (ICBM) has shown that Pyongyang now may be able to reach most of the continental US.

Key Focus ahead

The European session will kick-off with the release of a slew of final manufacturing PMI reports from across the Euro area economies, followed by the UK manufacturing PMI and crucial Eurozone Q2 flash GDP reports. Moving on, the NA session also offers key manufacturing PMI reading from Canada and US, with the ISM report eagerly awaited for fresh insights on the US economic recovery. Also, of relevance will be the US core PCE price index and personal spending data, while the GDT price index figures from New Zealand will also remain in focus later tonight.

EUR/USD - Another day… another leg higher? Focus on Eurozone GDP

EUR/USD jumped to a high of 1.1846 on Monday on the back of a broad based USD sell-off even though the 10-year US Treasury yield rose to 2.30% and the US-German 10-yr yield spread improved to 1.76 from the previous day’s print of 1.74. 

Eurozone Q2 flash GDP preview - HSBC

In its latest client note, analysts at HSBC forecast an upswing in Eurozone growth for the second quarter.

GBP/USD: Bulls target 1.3250 on UK manufacturing PMI?

The GBP/USD pair kicked-off the week on a positive note and hovered near ten-month tops of 1.3224 reached in the overnight trades, as markets eagerly await the release of the UK’s manufacturing PMI for the next leg higher.

Key US data on the cards tonight - Nomura

Analysts at Nomura offered a preview of the key US data on the cards in the US session today.