Global Manufacturing PMI data was flat, with the Chinese, European and US easing slightly. Markets were also steady, to begin the new quarter and look ahead at the important Non Farm Payrolls, released Friday. The ADP is an important fore-runner to the US Employment number and Non Farm Payrolls, but this missed expectations for the second month running. The US Private Sector added only 374,000 jobs, substantially missing the expected more than 600,000. German Retail Sales slumped 5.1% for the month, confirming softer than expected consumer demand. The US Dollar continued to cede ground, with the EUR rising to 1.1840, while the GBP pushed back to 1.3770.
Australian Manufacturing PMI data, is reflecting the politically induced virus lock-downs, falling dramatically over the last month. Australian GDP managed to eke out a gain of 0.7% for Q2, which is a surprise considering the drama and damage being imposed upon the economy, with the draconian political lockdowns. The softer reserve allowed the AUD to push up above 0.7350, while the NZD also broke back above 0.7050. The stronger than expected Australian GDP number and weaker US Dollar allowed these commodity currencies to build on recent gains, but remain extremely vulnerable, as markets look towards the all-important Non Farm Payroll data release.