- Dutch Final Q2 GDP +1.8% Y-On-Y NSA Vs Preliminary +1.6%.
- Dutch Final Q2 GDP +0.2% Q/Q SA Vs Preliminary +0.1%.
- Malaysia's August CPI +3.1% on Yr, Exceeds Reuters Poll Forecast 3.0%.
- Taiwan C/Bank Gov- Core CPI is Growing When Factoring out Falling Oil Price.
- Taiwan C/bank Governor says Taiwan Monetary Policy is "Very Loose".
- China Sept Caixin/Markit PMI Falls to 6-1/2-Year Low of 47.0 (Vs Reuters Poll of 47.5, Aug Final 47.3).
- PBOC Sets Yuan Mid-Point at 6.3773 / Dlr Vs Last Close 6.3760.
- Philippines says July Imports 16.9% from Year Ago.
- Philippines says July Trade Deficit bln.
- China's President Xi says China will Speed up Efforts to Build an Open Economy; Says China will not go back in Reform Process.
- (0300 ET/0700 GMT) France Markit Service Flash PMI.
- (0300 ET/0700 GMT) France Markit manufacturing Flash PMI.
- (0300 ET/0700 GMT) France Markit Composite Flash PMI.
- (0330 ET/0730 GMT) Germany Markit Service Flash PMI.
- (0330 ET/0730 GMT) Germany Markit manufacturing Flash PMI.
- (0330 ET/0730 GMT) Germany Markit Composite Flash PMI.
- (0400 ET/0800 GMT) Norway Labour Force Survey.
- (0400 ET/0800 GMT) Euro Zone Markit Composite Flash PMI.
- (0400 ET/0800 GMT) Euro zone Markit manufacturing Flash PMI.
- (0400 ET/0800 GMT) Euro zone Markit Service Flash PMI.
Key Events Ahead
- ECB President Mario Draghi Quarterly Hearing in Brussels.
FX Recap
EURUSD: A renewed bout of risk-aversion gripped the financial markets in the Asian session, bringing along higher volatility, after the Chinese manufacturing PMI hit fresh 6.5 year lows, adding to the persisting China slowdown fears and dampened investors' sentiment big time. Markets are eagerly awaiting a raft of manufacturing PMIs from across the Euro area economies to be reported in the European session ahead, as they are likely to set the tone for ECB President Draghi's testimony scheduled ahead of the US open. Looking ahead, the North American session is also expected to emerge eventful as the ECB President Mario Draghi will testify at a quarterly hearing before the Committee on Economic and Monetary Affairs of the European Parliament. He is likely to start pondering the bank's next moves following the Fed decision as he speaks to lawmakers in the European parliament on Wednesday. It made intraday high at 1.1140 and low at 1.1052. Initial support is seen around at 1.1015 and resistance at 1.1560 levels.
USDJPY: The Japanese yen bounced up against the US dollar on Wednesday after a weaker-than-expected Chinese manufacturing index reading saw demand for safe-haven assets increase. The US dollar fell more than 30 pips against the Japanese yen to an intraday low of ¥119.66 on Wednesday from ¥120.11 at the close of trade in New York on Tuesday, and was down further from ¥120.20 where the pair sat before the manufacturing release. Pair made intraday high at 120.32 and low at 119.66 levels. Initial resistance is seen at 123.20 and support is seen at 118.42 levels.
GBPUSD: Sterling is supported above 1.5300 levels. It made intraday high at 1.5365 and low at $1.5336 levels. The greenback, in terms of the US Dollar Index, continues to extend its gains against its G10 peers at the beginning of the week. Meanwhile, focus now shifts towards the euro zone PMIs, which are expected to slightly decrease from the previous levels. The ECB's Mario Draghi will testify before the European Parliament's Economic and Monetary Committee in Brussels. Initial support is seen at 1.5185 and resistance is seen around 1.5725 levels.
NZDUSD: Pair dips nearly 50 pips after the disappointing data to a session low of $0.6256. Towards the end of Asian trading session the kiwi was seen 0.35% lower at $0.6266. Pair is supported below $0.6300 levels. Pair is currently trading at 0.6275 levels. It made intraday high at 0.6301 and low at 0.6255 levels. Both antipodean currencies suffered a significant knee-jerk reaction to the downside on Wednesday, after China's factory gauge hit a six-and-a-half-year low. Initial support is seen at 0.6195 and resistance at 0.6511 levels.
AUDUSD: The Australian dollar fell back towards $0.70 against the US dollar on Wednesday after a manufacturing index from Australia's biggest trading partner China came in weaker than expected. Further signs that the world's second-biggest economy is losing momentum emerged on Wednesday, pushing the Australian dollar lower on fears that Australia's economy will suffer as a result. The Caixin-Markit China Manufacturing Purchasing Managers' Index (PMI) fell to a preliminary 47.0 in September from 47.3 last month, where a reading below 50 indicates a contraction in activity, while a figure above 50 signals expansion. The AUD/USD pair tumbled 0.86% to $0.7020 on Wednesday afternoon in Sydney, from $0.7090 at the close of trade in New York on Tuesday just hours earlier, and traded down from $0.7075 before the manufacturing release. Initial support is seen at 0.6908 and resistance at 0.7245 levels.
Equity Recap
Japanese markets were closed for the third day in a row on Wednesday, with the nation celebrating Autumnal Equinox Day today.
Hong Kong's benchmark Hang Seng index slumped 2.19% to 21,319.22 points after the manufacturing release, while mainland China's benchmark Shanghai Composite was down 1.10% at 3,150.67 points, and Korea's benchmark Kospi index fell 0.88% to 1,964.52 points.
The benchmark Australian S&P/ASX 200 index shed 1.77% to trade at 5,013.40 points in Sydney on Wednesday afternoon, with resource stocks weighing down hardest on the index.
New Zealand's benchmark S&P/NZX 50 index was little down at 5,694.57 points this afternoon in Wellington.
Australia's S&P/ASX 200 index closes down 1.96 pct at 5,003.60 points.
Treasury Recap
Thailand 6 bln baht, 13.75-year government bond average accepted yield 3.1060 pct.
China finance ministry auctions 3-year bonds at 2.92 pct yield, market expected 2.89 pct.
Taiwan finance ministry says plans to issue t$125 bln in government bonds in Q4.
Commodity Recap
Gold struggled on Wednesday to recover from its losses over the previous two sessions, as the dollar hit its highest in nearly three weeks on expectations the Federal Reserve would hike U.S. interest rates this year. Spot gold was little changed at $1,124.30 an ounce by 0330 GMT, after dropping 1.3 percent over the past two days.
Oil prices were trading lower on Wednesday, following another poor manufacturing reading from China, but with losses limited after a stockpile fall. Futures for WTI dropped 0.35% to trade at $46.20 per barrel, while Brent futures were traded 0.31% lower at $48.78 per barrel.
