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A soft session on Wall St. saw the Nasdaq close -1.1%, the S&P 500 -.7%, and the Dow Jones -.4%. U.S. 10-year yields closed slightly higher, while crude oil fell 1.1% to $74.70 a barrel. Currency markets remained steady and saw the AUD/USD settle in the middle of its .6765/.6813 range.
The greenback remained on the front foot into the London lunch as the antipodes fell to 0.67705 and 0.6224. EUR/USD continued below 1.1110 to hit 1.1105 lows while GBP/USD fell below 1.3200 to touch 1.3191. USD/JPY climbed steadily and moved to highs above145.00 into the NY morning while USD/CAD topped out at 1.3479.
No data of any significance over the NY morning with the USD slowly paring gains as majors recovered into the London rate set.
Day Ahead
Another quiet day on the data front with little of note on the radar.
Looking ahead to the weekend, from China, the NBS manufacturing PMI will be released on Saturday, and will give us a preview of how the Chinese economy performed in August. Markets expect the reading to remain subdued at 49.5, with the main drag coming from soft demand. High frequency data suggest that activity remains mixed. Rebar output fell 37% YoY in the first two weeks of August, as steel makers cut production amid falling prices. On the other hand, the Emerging Industries PMI (EPMI), which tracks sentiment in the high-tech sector, rebounded above year-ago levels in August for the first time since May this year.
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6783 |
| AUD/NZD | 1.0854 |
| AUD/JPY | 97.90 |
| AUD/CNH | 4.8347 |
| AUD/EUR | 0.6097 |
| AUD/GBP | 0.5141 |
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