Market Review for March 01, 2016

During the Asian session RBA was the event traders focused on. RBA left the cash rate unchanged at 2.00% as widely expected and the same time provided no additional information compare to what is has stated in the past. It was stated again the Central bank will review all the new information regarding the labour market conditions and the global financial turbulence that affect the global and domestic demand. AUDUSD pulled away from the low after RBA comments nonetheless traders will now need to closely watch Australia’s GDP report scheduled tomorrow, ahead of U.S. Unemployment Report. Also from Australia, AIG Manufacturing Index came in at 53.5 and Building Approvals dropped -7.5% m/m.

China released economic indicators showed that the Chinese economy is slowing down. Manufacturing PMI came in at 49, Non-Manufacturing PMI at 52.7 and Caixin Manufacturing PMI at 48.  Caixin economist noted that the index readings for all key categories including output, new orders and employment signalled that conditions worsened.

Also earlier last night New Zealand Overseas Trade Index q/q came in at-2.0%.  NZDUSD continues to rise, despite downbeat Chinese economic data and volatile oil prices. Later in the day, US PMI data followed by NZD GDT Price Index must closely eye since the pair may get volatile.

In Early European session the Switzerland Retail Sales y/y came in at 0.2% and country’s Manufacturing PMI at 51.6 better than the forecast of 49.6. Eurozone countries economic data came in line with the expectations and did not change much in the market. The UK’s Manufacturing PMI though came at 50.8 worse than expected causing some volatility in the market and the GBPSUD is now trading at 1.3960 area. Canada GDP data also must be monitor during US session.

View our full economic calendar for a daily roundup of major economic events.

Data releases to monitor:

EUR:      Unemployment Rate

USD:      ISM Manufacturing PMI, Final Manufacturing PMI, Construction Spending m/m,               Total Vehicle Sales

CAD:      GDP m/m, RBC Manufacturing PMI