FX Brief: PMI Data Off To A Weak Start In July

A summary of news and snapshot of moves from today’s Asia session.

  • Trade talks with China are “back on track” according to Donald Trump, over the weekend. Improved sentiment currently sees gold amid its most bearish session since March and the S&P500 gap to a record high.
  • A weak set of PMI data across Asia weighed on AUD. South Korea’s manufacturing PMI contracted for a 2nd consecutive month and, at 47.5, is its 2nd fastest contraction in four years. China’s manufacturing PMI contracted for a 2nd consecutive month. Neither of these reads bode well for global growth. Australia’s manufacturing PMI contracted for the first time since August 2016, at 49.4 versus 52.7 prior. Japan’s Tankan index also missed expectations.
  • AUD/JPY is the biggest mover of the Asian session, hitting an intraday low of -0.55% and exceeding its typical daily range.

Up Next:
Being the start of the month, traders will be keeping an eye on global PMI data, which can give a forward look for growth and company earnings. Today sees flash manufacturing PMI data released for Germany, France, Europe, UK and US.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.