Aussie Traders Waiting For RBA statement

The first week of September started with disappointing data from Asia. China’s official Manufacturing PMI and HSBC Manufacturing PMI were 51.1 and 50.2 respectively in August, both slightly lower than expectations. Also, the Australian AIG manufacturing index once again stepped back to contraction. This index has only stood upon 50 once this year, showing that the domestic industrial section is still weak.

The Aussie, however, ignored those soft data and kept its strength beyond the key level at 0.9320. We can see a reversal signal (engulfing pattern) on the daily chart. Traders will be watching closely the RBA statement today, the GDP tomorrow, and retail sales and trade data on Thursday. Hopefully, those data release will help the Aussie/Dollar choose a defined path to either direction.



On the contrary, NZD once was a star currency but now has lost most of its gains from this year. Certainly, the economic growth is not as strong as the RBNZ had forecasted at the beginning of the year. New Zealand business sentiment has dropped for six months in a row and the dairy industry is facing fiercer competition from other countries. The NZ economy has now impacted the rate hike. As such, we may not see further rising for the rest of this year and the Kiwi/Dollar may continue its bearishness under 0.84.



Asian stock markets mostly rose yesterday despite the downbeat data and Ukraine tension. Shanghai Composite surged 0.83% up to 2235, stand beyond the 20-day MA. The Nikkei Stock Average gained 0.34%. The Australian ASX 200 was up 0.07% to 5630. In European stock markets, the UK FTSE lost 0.03%, the German DAX fell 0.11% and the French CAC Index pulled back 0.24%. U.S. market was closed for Labour Day.

On the data front, Australia Building Approvals and Current Account will be released at 11:30 AEST. The first Central Bank decision this week is today’s RBA Rate statement at 14:30 AEST. In the early European session, UK Construction PMI will be released at 18:30 AEST. U.S. ISM Manufacturing PMI will be at midnight.

Have a great trading day!
Anthony