Australian dollar remains steady after RBA left the cash rate unchanged at 2.00% as widely expected. The central bank provided nothing new in the accompanying statement. It noted that "Over the period ahead, new information should allow the Board to judge whether the improvement in labour market conditions is continuing and whether the recent financial turbulence portends weaker global and domestic demand. Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand." Also from Australia, current account deficit widened to AUD -21.2b in Q4. Building approvals dropped -7.5% mom in January. New Zealand terms of trade index dropped -2.0% qoq in Q4.
China's official PMI manufacturing dropped to 49.0 in February versus expectation of 49.4. That's the weakest level since January 2009 and suggests that contraction is worsening. Official PMI non-manufacturing dropped to 52.7. Caixin PMI manufacturing dropped to 48.0 versus expectation of 48.4. Caixin economist noted that "The index readings for all key categories including output, new orders and employment signaled that conditions worsened." Yesterday, PBoC announced to lowered the so called Reserve Requirement Ratio by -0.5% to 17.0%. Elsewhere in Asia, Japan unemployment rate dropped to 3.2% in January, house hold spending dropped -3.1% yoy.
Looking ahead, manufacturing data will be the main focus today. In European session, UK PMI manufacturing will be the major focus. Eurozone will release PMI manufacturing finals, unemployment, German unemployment. Swiss will release PMI manufacturing and retail sales. US will release ISM manufacturing later today, as well as construction spending. Canada will release GDP.