Global Markets: 

  • Australia PPI -0.1 % QoQ vs 0.7 % f/c
  • Japan Manufacturing PMI 50.5 vs 50.8 f/c
  • Chinese HSBC Manufacturing PMI 51.7 vs 52.0 f/c
  • Asian stock markets: Nikkei down 0.60 %, Shanghai Composite gained 0.20 %, Hang Seng fell 0.50 %, ASX dropped 1.50 %
  • Commodities: Gold at $1284 (+0.15 %), Silver at $20.42 (+0.05 %), Crude Oil at $98.00 (-0.20 %)
  • Rates: US 10 year yield at 2.574 

FX Update: 

  • AUD – AUD/USD rallied in the early Tokyo session, reaching a high of 0.9318 after the official Chinese PMI number came in better than expected. HSBC’s PMI figure disappointed however, and the Aussie fell to a session low of 0.9285. Dealers report that exporters have been buyers of the pair overnight, which helped it bounce off the level. Aussie continues to trade with an offered tone and a good NFP number today would add to bearish sentiment and pave the way for a test of the 0.92 level.
  • CAD – USD/CAD briefly fell beneath 1.09 yesterday as the Canadian GDP number came in better than expected. Buying interest from leveraged names continues to be strong though and the pair slowly made it’s way back above 1.0920. It is likely to remain well-bid into the NFP release. Bids are rebuilding at 1.0880 and 1.0860, while offers are located ahead of the 1.0960 resistance level.
  • EUR – A quiet day for the Euro so far, but the Manufacturing PMI figures we’ll get this morning might bring some pre-NFP volatility. Decent buying interest seen ahead of the 1.3350 option barrier, while offers seen at 1.3425 and strong towards 1.3450.
  • JPY – USD/JPY started the Tokyo session around 102.80 and slowly rose to the session high of 102.95. Short-term speculators and importers were the main buyers, while exporter selling interest resides above 103.20. 

Upcoming Events: 

  • 07:15 GMT – Spanish Manufacturing PMI (54.7)
  • 07:45 GMT – Italian Manufacturing PMI (52.6)
  • 07:50 GMT – French Manufacturing PMI (47.6)
  • 07:55 GMT – German Manufacturing PMI (52.9)
  • 08:00 GMT – Euro Zone Manufacturing PMI (51.9)
  • 08:30 GMT – UK Manufacturing PMI (57.2)
  • 12:30 GMT – US Core PCE Price Index (0.1 % MoM)
  • 12:30 GMT – US Nonfarm Payrolls (235k)
  • 12:30 GMT – US Personal Income (0.4 % MoM)
  • 12:30 GMT – US Personal Spending (0.4 % MoM)
  • 12:30 GMT – US Unemployment Rate (6.1 %)
  • 13:45 GMT – US Manufacturing PMI (56.3)
  • 13:55 GMT – US Michigan Consumer Sentiment (81.8)
  • 14:00 GMT – US ISM Manufacturing PMI (56.0)