Japan Nikkei Manufacturing PMI (Aug, F): 51.9 (prev 51.2)
PBOC Fixes Yuan Reference Rate At 6.3864 (prev 6.3915)
Hon Kong Fin Sec Chan: China Won’t Devalue Yuan Much Further — SCMP
Stocks, oil tumble as grim China PMI sparks growth fears – RTRS
Oil on track for longest weekly losing streak in 29 years – RTRS
Japan August flash manufacturing PMI shows fastest expansion in seven months – RTRS
China Stocks Sink in Worst Weekly Rout Since 2011 Amid Outflows – BBG
The US Dollar extended losses overnight. Yesterday’s data releases out of the US were solid, but the dovish FOMC minutes from Wednesday started weighing on the currency. EUR/USD rallied to 1.1292 as shorts were squeezed and stops above 1.12 & 1.1250 cleared. The next major resistance level now lies at 1.1430, with intraday support at 1.1220 and 1.1180. GBP/USD has lost its upside momentum and remains stuck in a range. However, the Pound is still well bid and test of at least 1.5780 seems likely.
USD/JPY did not find any meaningful support at 123.00, broke below and eventually reached a low of 122.79. Next support seen at the June low of 121.92. Meanwhile, the commodity currencies remain largely unchanged. While the broad USD weakness is preventing any sharp declines, weak commodities prices are keeping the currencies under pressure.
Metals are having an excellent day, thanks to the weak Dollar. Gold had three consecutive up days and rallied from $1116 to $1168. The move in Silver has been a bit less impressive, but still, it managed to break above the previous monthly high at 15.60 and extended gains to 15.70.