China's Manufacturing PMI todays driver

Australian Dollar:

The Australian dollar opens the new week in a generally stronger position following a week in which markets experienced bouts of nervousness whilst also being left slightly surprised by comments made by Fed Chair Janet Yellen who said that interest rates could start rising as early as the beginning of 2015. Having dropped to a late session low of 0.9031 on Friday when valued against its US Counterpart the Australian dollar appears relatively stable up above the 90 US cents mark at least for the time being. Opening stronger this morning at a rate of 0.9074 a manufacturing PMI reading from China today remains the highlight on the economic calendar in what’s shaping up a relatively quiet week on the economic data front.  

• We expect a range today of 0.9030 – 0.9100

New Zealand Dollar

Having traded in a tight range of 0.8518 – 0.8567 when valued against its US Counterpart on Friday the New Zealand dollar starts the new week relatively stable and little changed ahead of a key manufacturing report from China which acts a leading indicator towards broader growth.  With the majority of economists expecting the manufacturing PMI Index to further contract signs of economic weakness throughout the world’s second largest economy may well weigh on the Kiwi over the coming 24 hours. Opening this morning steady the Kiwi currently buys 85.30 US Cents.

• We expect a range today of 0.8490 – 0.8560 

Great British Pound:

Whilst steady over the course of Friday’s session a broader view revealed the Great British Pound notched up its biggest weekly drop in four months versus its US Counterpart. Boosting the relative appeal of the Greenback by announcing a rough timeframe in which interest rates would rise the Bank of England did the exact opposite failing to provide any real update on when rates would be hiked. In a week dominated by Central Bank moves it comes as no surprise to see the Sterling still struggling this morning weaker at a rate of 1.6482. In other currency moves the Great British Pound is also weaker against both the Aussie (1.8134) and the Kiwi (1.9309).

• We expect a range today of 1.8100 – 1.8160

Majors:

The US Dollar Index which measures the dollar against six major currencies fell on Friday only a day after it hit a three week high of 80.354. Running out of steam following its impressive gains off the back of shift in US interest rate expectations a weaker Greenback has propped several of the majors up by comparison this morning. Whilst the Greenback spluttered the economic fundamentals on Friday didn’t after figures showed US Factory production rose in February by the most in six months. In further signs the labour market continues to strengthen weekly unemployment benefits held near their lowest point in four months with investors today looking towards a string of key PMI readings throughout Europe for further evidence of global economic progress. In broader currency moves the USD/JPY is lower at 102.241 whilst the EUR/USD is higher at 1.3785.

Data releases

• AUD: No data today
• NZD: No data today
• JPY: BOJ Gov Kuroda Speaks
• GBP: No data today
• EUR: French Flash Manufacturing PMI, French Flash Services PMI, German Flash Manufacturing PMI, German Flash Services PMI, Flash Services PMI, Manufacturing PMI