FX Highlights

  • USD trades higher as equities trade lower in Europe, Australian economic data was mixed with strong building approvals and manufacturing PMI and report of widening of the Q2 current account deficit, RBA holds rate policy steady with less hawkish than expected policy statement, AUD trades lower, Asian equities post a modest rebound, Bloomberg reports that Morgan Stanley warns the Shanghai Index may fall another 25%, EU manufacturing PMI rises and unemployment hits a 10 year high, Swiss PMI and Q2 GDP rise more than expected, UK manufacturing PMI for August and July consumer credit comes in weaker than expected, mortgage applications rise, crude prices mixed
  • Focus turns to today's release of ISM, construction spending, pending home sales and domestic auto sales
  • Japan's economics Minister Hayashi says there's a high risk of deflation and accommodative policy must be maintained for a while, JPY lower
  • Australia's July building approvals rise 7.7%, August manufacturing PMI rises to 17.2 the highest level in 17 months, the Q2 current account deficit widened to 13.35 bln, Q2 public spending rises 0.8%, RBA holds rate policy steady, the policy statement less hawkish than expected, AUD lower
  • Swiss Q2 GDP falls 0.2%, August PMI rises to 50.2 from 44.3 last month, CHF lower
  • ECB's Nowotny says the crisis has been averted but he is not ready to talk about rate hikes, EU final August manufacturing PMI rises to 48.2 compared to 46.3, German jobless total drops in August, unemployment rate unchanged at 8.3%, EU July unemployment rate rises to a 10 year high at 9.5%, EUR lower
  • UK August manufacturing PMI falls to 49.7 from 50.2, consumer credit declines and mortgage applications rose to 15 month high, GBP lower
  • US equity markets set to open lower, European equities lower, Nikkei closed 37 points higher

Upcoming Events

  • US- Tuesday, July construction spending will be released expected at -0.1% compared to 0.3% last month along with August ISM expected at 50.1 compared to 48.9 last month, July pending home sales expected at 96.1 and domestic auto sales at 9.45 mln
  • CAN- Tuesday, no major Canadian economic data is scheduled for release today