Quiet markets with not much of data as US and Canada closed on account of Labour Day Holiday
Key Notes:
- Australia AIG construction index 53.8 vs. 47.1 previously
- Australia ANZ job advertisements m/m 1.0% vs. -0.5% previously
- Japan leading indicators 104.9% vs. 104.9%
- German industrial production m/m 0.7% vs. 1.2%
- Eurozone Sentix investor confidence 13.6 vs. 16.2
The currency markets opened today including China which was closed for most of last week. Equity markets in the Asian session were relatively quiet although mixed. The Shanghai index was weak, losing -2.5% for the day while the Hang Seng Index was down -1.23%. The Nikkei225 managed to seek out modest gains, closing the day near flat with just 0.38% gains for the day. There was not much of important market data being released for the most part, across Asia and Europe.
The Australian dollar managed to make strong gains into the day, trading 0.4% higher, while the Kiwi continued to trend lower losing -0.38% for the day. Both the Aussie and the kiwi came under pressure last week largely due to the slowdown worries from China and a strong US jobs report which has brought back the discussion for a rate hike in September.
The Yen was weaker in today’s trading with USDJPY gaining 0.35% for the day. EURJPY which came under strong selling pressure for the past couple of weeks was also seen recovering from the lows as the EURJPY made gains of 0.28% at the time of writing.
The European session was also quiet. The only economic data from Europe was the Sentix investor confidence, which fell to 13.6, below estimates of 16.2 and down from 18.4 previously and the German industrial production which increased at a slower pace of 0.7%, below estimates of 1.2%. The Euro was trading flat for the most part of the day, within Friday’s range.
The British Pound was the stronger performing currency today as the Pound rallied from the start of the European trading session. GBPUSD gained 0.5% for the day to trade near the highs of 1.528 before easing back lower to trade near 1.525.
The Swiss Franc was another weak performer, losing -0.43% for the day. Crude oil futures remained weak, down -1.1% for the day after the commodity previously rallied to 5-week highs. Crude Oil futures failed to capitalize on the gains and were trading near $45. Gold futures were also flat for the day, down -0.22% and trading within Friday’s range. The precious metal was trading at 1120 at the time of writing.
The US and Canadian markets are closed today on account of Labour Day holiday and there are no economic releases due either. The US Dollar index was flat, trading near the opening price of 96.17
