Written by Steven Dooley, Head of Market Insights
Global overview
The US dollar was mostly higher after manufacturing PMI illustrated the stark difference in the performance of the US versus Europe. The Aussie dollar gained. Australian inflation is in focus today.
US data stays strong
The US dollar was mostly stronger overnight with a better than expected reading from the US purchasing manager index boosting the greenback.
The USD was best versus the European currencies with the EUR/USD and GBP/USD both down 0.7%.
The USD/JPY gained 0.1% and remains capped by the 150.00 level with market worries about potential intervention.
However, after the US’s better PMI number, commodities rallied, helping the Aussie higher. The kiwi was flat.
PMI drives markets
The disparity in FX moves was driven by yesterday’s PMI numbers.
While the US number beat expectations – with manufacturing PMI back at the key 50 level – European PMI numbers tanked.
Most notably, German PMI stayed weak at 41, while French manufacturing fell to 43. European services numbers were also weaker.
Australian inflation due
Today’s focus is Australian inflation, due at 11.30am AEDT.
The market is looking for the September quarter to come in at 1.1% up from 0.8% in the June quarter.
US PMI boosts greenback, lifts Aussie
Table: seven-day rolling currency trends and trading ranges (apologies, full table not available today)
Key global risk events
Calendar: 23 – 28 October
All times AEDT
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
