DailyFX.com -

Talking Points:

  • US Dollar May Extend Advance if ISM Manufacturing Data Tops Forecasts
  • Australian Dollar Ignores RBA Announcement with Fed Policy Bets in Focus
  • See Economic Releases Directly on Your Charts with the DailyFX News App

A relatively quiet economic calendar in European trading hours is likely to see traders looking ahead to US news-flow, where the spotlight will fall on Augusts’ ISM Manufacturing print. The index is expected to inch downward to 57.0 from a three-year high of 57.1 recorded in the prior month, implying the pace of factory-sector activity growth narrowly slowed.

US news-flow has increasingly outperformed relative to consensus forecasts over recent weeks. This suggests that analysts are underestimating the vigor of recovery in the world’s largest economy and opening the door for an upside surprise.

Such an outcome is likely to fuel speculation that the time gap between the end of the Fed’s “QE3” asset purchases and the first subsequent interest rate hike will be relatively short, pushing the US Dollar higher against its top counterparts after the benchmark unit hit a 7-month high against its key counterparts. Indeed, the greenback outperformed in overnight trade as US bond yields soared in anticipation of this week’s high-profile data releases.

The Australian Dollar was little-changed after the RBAmonetary policy announcementregistered in line with the status quo. Governor Glenn Stevens and company repeated the now-familiar argument that “the most prudent course is likely to be a period of stability in interest rates” for the time being. The Aussie fell earlier in the session as the aforementioned jump in US yields punished rates-sensitive currencies at both ends of the return spectrum. In fact, the Japanese Yen proved weakest on the session on the back of a widening US-Japan rates gap.

New to FX? START HERE!

Asia Session

GMT

CCY

EVENT

ACT

EXP

PREV

23:30

AUD

ANZ Roy Morgan Consumer Conf. (Weekly)

112.6

-

113.5

23:50

JPY

Monetary Base (YoY) (AUG)

40.5%

-

42.7%

23:50

JPY

Monetary Base (End of Period) (¥) (AUG)

243.5T

-

243.2T

1:00

NZD

ANZ Commodity Price (AUG)

-3.3%

-

-2.4%

1:30

JPY

Labor Cash Earnings (YoY) (JUL)

2.6%

0.9%

1.0%

1:30

AUD

Current Account Balance (A$) (2Q)

-13.7B

-14.0B

-7.8B

1:30

AUD

Net Exports of GDP (2Q)

-0.9%

-0.7%

1.4%

1:30

AUD

Building Approvals (MoM) (JUL)

2.5%

1.9%

-3.8%

1:30

AUD

Building Approvals (YoY) (JUL)

9.4%

7.8%

17.6%

4:30

AUD

RBA Interest Rate Decision

2.50%

2.50%

2.50%

European Session

GMT

CCY

EVENT

EXP

PREV

IMPACT

5:45

CHF

GDP (QoQ) (2Q)

0.5%

0.5%

Medium

5:45

CHF

GDP (YoY) (2Q)

1.6%

2.0%

Medium

8:30

GBP

Markit/CIPS UK Construction PMI (AUG)

61.5

62.4

Medium

9:00

EUR

Eurozone PPI (MoM) (JUL)

-0.1%

0.1%

Low

9:00

EUR

Eurozone PPI (YoY) (JUL)

-1.1%

-0.8%

Low

Critical Levels

CCY

Supp 3

Supp 2

Supp 1

Pivot Point

Res 1

Res 2

Res 3

EURUSD

1.3079

1.3105

1.3117

1.3131

1.3143

1.3157

1.3183

GBPUSD

1.6497

1.6555

1.6581

1.6613

1.6639

1.6671

1.6729

Related Articles
  1. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  2. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  3. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  4. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  5. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  6. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  7. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  8. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  9. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  10. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
RELATED TERMS
  1. No results found.

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!