A$ Stronger On Better Equity Sentiment

AUDUSD jumped on better-than-expected China manufacturing PMI data but then reacted to the weaker services read but overall it is up 0.4% to around 0.6678, close to the intraday high of 0.6680. The USD index is up 0.1%.

• AUDJPY is 0.8% higher to 94.59 as the yen has weakened following the first BoJ bond purchase after Friday’s YCC adjustment.
• AUDNZD is up slightly to around 1.0808. Aussie is up 0.5% versus the euro to 0.6062 and +0.4% against the pound to 0.6059 and 0.5195.
• Equity markets are generally higher with the Hang Seng up 1.5% and the CSI 300 +0.7% but the ASX is flat. S&P e-minis are down 0.1%. Brent is 0.3% lower at $84.15/bbl. Copper is up 0.2% and iron ore is rising towards $109/t.
• The Fed’s Goolsbee speaks later and the senior loan officer survey is published. The July MNI Chicago PMI and Dallas Fed surveys print. Euro area Q2 GDP & July inflation are also released. The focus of Australia’s week will be Tuesday’s RBA meeting, where economists are split but expect another hike at the margin.