July 1: Asian session
EUR/USD rose by 30 pips from $1.3000. Euro remains close to 1-month low ahead of the ECB meeting on Thursday, July 4, with President Mario Draghi signaling policy will remain loose. Watch for Spanish and Italian June manufacturing PMIs (07:15-07:45 GMT), euro zone’s inflation and unemployment data (09:00 GMT). The US will release ISM manufacturing PMI at 14:00 GMT. GBP/USD edged higher from $1.5200. Britain will release manufacturing PMI at 08:30 GMT.
USD/JPY edged higher, touching a fresh three-week high of 99.50. Sunday Tankan manufacturing index improved, rising to +4 (prior: -8, expected: +3). Non-manufacturing index came in line with forecast at 12 (prior: 6). According to Japan’s economy minister Amari, the economy is clearly recovering. USD/CHF is consolidating around 0.9450.
AUD/USD opened the week with a bearish gap at $0.9115 and has partially retraced some of its last week’s losses, strengthening to $0.9190. Sunday’s Australia AIG manufacturing index for June remained below 50, but came at a highest level in 2 years (49.6 vs. prior of 43.8). The Reserve Bank of Australia meets tomorrow with no policy change expected. NZD/USD has also opened with a gap down at $0.7710 and recovered to $0.7770. New Zealand Q2 employment confidence index rose from 100.7 to 104.2. USD/CAD slid by 25 pips to 1.0500. Canadian banks are closed today in observance of Canada Day.
Aussie and kiwi didn’t pay much attention to the weak Chinese manufacturing figures. China official manufacturing PMI for June came at 50.1 (prior: 50.8, expected: 50.1), while HSBC China manufacturing PMI for June remains lower at 48.2 (prior: 48.3, expected: 48.3). Shanghai Composite index remains in the red zone, trading below 2000.