PMI

With the German PPI on Monday and economic data due out of the EU and US this week, along with the FOMC Minutes, EUR/USD could be quite volatile.

The National Bureau of Statistics of China (NBS) released PMI data for China, and is another data set which underperforms relative to expectations.

Whilst US PMI data disappointed, it’s not as though the economic deterioration we’re witnessing didn’t come without plenty of warning. And the upshot all this is that it's deflationary.

With the Jackson Hole Symposium this Thursday and Friday and the Fed stating that it is “data dependent”, the US data matters more at this point.

With negative manufacturing data beginning in China and continuing throughout the US session, WTI Crude Oil has been trading lower, down nearly 5% on Monday.

With more manufacturing due out later in the week, traders need to watch Dr Copper to help gauge the health of the economy. If copper continues its move lower, watch for AUD/USD to move lower with it!

This is the latest macro data to underscore worries about a sharp economic slowdown

Hawkish comments from ECB President Christine Lagarde and weaker PMI data from the UK have helped push EUR/GBP back towards recent highs.

Now on its sixth consecutive bullish session, USD/JPY rallied to a fresh high overnight and stopped just shy of 111.00.

PMI data was mostly supportive of sentiment overnight, with data from parts of Asia, Europe and North America beating expectations.

If the trend continues, the readings will soon be below 50, indicating China’s manufacturing sector will be contracting!

Sentiment was given a slight boost in Asia today following the weekend’s positive news flow.

AUD/USD traders will be eyeing the 0.8000 level first

Watch 1.2050 as the line in the sand!

USD/CNH has dropped 1.4% so far in October and is on track for a fifth straight monthly decline.