The Australian Manufacturing PMI final numbers for September of 55.4 came in lower than expected of 55.5. However, was far better than the prior print at 53.6. Nonetheless, the released data did not have any noticeable effect on the Australian Dollar against major currencies.
Equities
The US stock markets rallied on positive ADP numbers, the data came in stronger than expected however, the coronavirus surge weighed heavily on some sectors like aviation and entertainment as some US airlines prepare to layoff tens of thousands of workers unless they get federal aid.
The US fiscal stimulus deal remained in the negotiations stage as Democrats reduced their demands from $3.4trillion to $2.2 trillion, however, the US administration offer was below the $2.0 trillion thresholds and presented a new “generous” offer of $1.5 trillion with $20 billion extensions in aid for the airline's industry. The ball now is in Democrat’s court.
Europe has started to tighten measures to combat the Coronavirus resurgence. The Czech Republic issued a 30-day state emergency and the UK PM asked people to work from home and said he will not hesitate to impose new restrictions.
|
Stock Market |
Change % |
|
+0.7% | |
|
+1.2% | |
|
+0.9% | |
|
-0.5% | |
|
-0.5% | |
|
-0.5% | |
|
-0.4% |
Currencies
The US Dollar index retreated further on Thursday eyeing a test of the inverted head and shoulders neckline located at 93.47. A daily close below that level could send the price even lower towards 92.73.
The EUR/USD bearish momentum has slowed down and rallied eyeing a test of 1.1909. That said, a daily close below 1.1713 could send the price even lower to re-test 1.1621. A better than expected non-farm payrolls data on Friday may send the pair even higher.
GBP/USD benefited from a weaker US dollar and rallied above 1.2773 hinting to test 1.3048. Nonetheless, markets pay attention to the EU/UK negotiation’s updates, as the hard Brexit risk is not reflected in the Sterling pound price. The UK has offered some concessions in the fisheries track and now it is up to the EU to decide if they are enough or not.
Commodities
Rising numbers of Coronavirus kept oil price fundamentals weak due to worries of lower fuel demand. The Brent oil remained below $42.50 and indicated a possible downward move towards $39.60, while the Brent oil bears could press towards $38.37.
The gold steadied above $1,861 hinting towards $1,921. However, a close below $1,861 could send the precious metal towards $1,796.
Looking Ahead
Eyes will be on the US PCE index numbers with the initial jobless claims at 8:30 PM (GMT). At 9:30 PM comes the Canadian manufacturing PMI final read for September, and at 9:45 and 10:00 PM the US Markit and ISM manufacturing PMI data will be released. By 11:00 PM the Fed member Williams speaks.