Forex Today: Aussie firmer on China PMI, RBA, UK PMI, EZ GDP – Up Next

Forex today experienced moderate risk-aversion in Asia, as the latest North Korea headlines outweighed stronger macro releases out of Australia and China. The Yen emerged the biggest gainer among the Asia-pac currencies on resurgent flight to safety, while the Aussie trimmed China PMI-led gains, following the RBA’s monetary policy announcement. Meanwhile, the US dollar traded largely subdued versus its main competitors, meandering close to yesterday’s troughs of 92.41.

Among the related markets, gold traded sharply higher on North Korea risks, while oil prices were mixed, in the wake of Irma storm. The Asian equities traded with negative bias amid reduced appetite for risky assets.

Main topics in Asia

RBA keeps policy steady, higher AUD weighing on outlook for output & employment

The Reserve Bank of Australia (RBA) at its monetary policy meeting today, left the official cash rate (OCR) unchanged at a record low of 1.50%, as widely expected.

N. Korea spotted moving ICBM-grade rocket towards west coast

Reuters out with the latest North Korea headlines, as reported by Asia Business Daily, citing that North Korea spotted moving ICBM-grade rocket towards west coast and possible launch is expected before Saturday.

Aussie Q2 Current Account: Net exports add 0.3 percentage points to GDP

The Australian Bureau of Statistics data released today showed a current account deficit of AUD 9.562 billion in the second quarter of 2017. 

China’s Caixin Services PMI rises to 3-month highs in Aug, a big beat on expectations

China 's Caixin August Services PMI came in at 52.7 vs 51.5 last and 51.8 expectations.

Australia government's spending rises in Q2

A fresh report from the Australian Bureau of Statistics (ABS) showed on Tuesday, the Australian government spending for consumption rose 1.2% in the second quarter to an inflation-adjusted AUD 80.08 billion ($63.71 billion).

Key Focus ahead

Looking ahead, we have an eventful EUR calendar, with the Swiss GDP and CPI data up for release, followed by a raft of Euro area final services PMI reports. However, the UK services PMI data will emerge the main market mover in Europe. Also, the second-liner data, including the Eurozone GDP and retail sales, will keep the EUR, GBP traders busy. Besides, speech by the RBA Governor Phillip Lowe will also remain the key highlight in the session ahead.

Later in the NA session, speeches by FOMC members Brainard and Kashkari will drive the USD moves, with the US factory orders data also on the cards. Meanwhile, the fortnightly dairy auction results published by Fonterra will also have a strong impact on the NZD.

GBP/USD: Further downside in play ahead of UK services PMI?

The GBP/USD pair consolidated the US capitulation in Asia, as the bears await the UK services PMI data for a break below 1.29 handle.

EUR/USD - Will it breach the symmetrical triangle on the upside?

The EUR/USD dropped to a low of 1.1892 in Asia before catching bids above the 50-DMA level of 1.1898. The spot clocked a high of 1.1910 levels. The 4-hour chart shows a minor symmetrical triangle pattern. 

UK: Looking for a slight downturn in Services PMI to 53.5 - TDS

Analysts at TDS are in line with the consensus and are looking for a slight downturn in August’s Services PMI to 53.5 for UK economy.        

Final Eurozone Q2 GDP data preview - HSBC

HSBC analysts out with their expectations on the upcoming final Eurozone Q2 GDP data due later today at 0900GMT.

NZ GDT preview: NZX futures point to a 3% gain for wholemilk powder - ANZ

Following the release of the Chinese Caixin services PMI, the next key event for the NZD/USD pair remains the NZ GDT price index, and hence, the ANZ analysts provide a brief preview on what to expect from Fonterra’s fortnightly dairy auction results.