A steady start to the new week/quarter with focus on the plethora of data points scheduled throughout the week, most notably the NFP report on Friday. The Asian session saw AUD underperform post the release of the latest retail sales data, alongside the softer Chinese Caixin PMI figure, which saw the currency make a brief break below 0.76. While focus for the antipodean will be tomorrow’s RBA report in which it is expected that the central bank will maintain a neutral tone. Of note, AUD/USD o/n is roughly 10.5/33pips.
Elsewhere, GBP had been pressured for much of the session in the wake of the latest UK manufacturing PMI which slipped to a 4-month low. This had been led by the slowdown in output and orders of consumer goods, according to Markit.
In the emerging market space, ZAR continues to grab the headlines with the latest reports from the weekend out of South Africa noting that the parliament speaker may call for a vote of no confidence in President Zuma after sacking 9 cabinet members last week. In turn, USD/ZAR continued its upward trajectory to break above Friday’s high moving to within the highs seen late Jan at 13.68, additionally with uncertainty on whether South Africa’s credit rating is downgraded by S&P this Friday, ZAR could see further weakness to 14.