Author : Brett Gordon
The AUD initially tried to rally during yesterday`s the trading session but then rolled over to stay within the consolidation range from the past few days and with nothing having been resolved between US and China this range could continue.
The EUR manufacturing data was better than expected last night, although the levels do remain at historically lows. August output in both Germany and France was ahead of market expectations and up from July.
While in the U.S, manufacturing PMI fell to 49.9 vs market expectations of 50.5. The data showed factory output contracting for the first time in 10 years.The US Dollar was mixed, losing ground on the weak data, but finding buying support after news emerged that two US Fed officials saw no case for further interest rate cuts at this time.
The GBP was the big mover overnight, gaining over 1% on renewed Brexit optimism, as PM Boris Johnson continued his tour around Europe, meeting with major leaders.
The big event in the next 24 hours is US Fed Chairman Powells speech tonight at the Jackson Hole conference. Markets will be looking to see if Powell continues with his “mid-cycle” message in reference to the last rate cut, given renewed concerns about the global economy and continued trade tensions with China.
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