Forex Today: AUD weaker as China PMI disappoints, EZ flash CPI – In focus

Moderate risk-aversion dominated FX today in Asia, with the safe-haven Yen on the front foot amid renewed concerns over North Korea’s missile threat and upbeat Japanese industrial production data. Meanwhile, the Antipodeans remained depressed on the back of dismal Chinese manufacturing and services PMI readings. The US dollar demand returned to markets, as the dust settled over softer US Q2 GDP aftermath.

Main topics in Asia

Weekend news: geopolitics post North Korea's intercontinental missile - ANZ

Analysts at ANZ explained that the weekend was dominated by geopolitical headlines after North Korea test fired its second intercontinental missile on Friday. 

North Korea: US sees 'no value' in UN security council meeting – BBC

News is crossing the wires via BBC that – US will not call for a UN Security Council meeting over North Korea's missile tests because it would produce "nothing of consequence".

China July official manufacturing PMI prints lower than estimate

China official manufacturing Purchasing Managers' Index for the month of July came in at 51.4 vs. 51.6 expected. The previous month’s print was 51.7.

US considering oil-related sanctions against Venezuela - RTRS

Reuters reported comments from the US officials that crossed the wires earlier today, citing that the US is mulling over oil-related sanctions against Venezuela.

Lloyds Survey: UK companies' optimism on economy hits 6-month lows

Results of the latest Lloyds Bank’s survey showed that the UK companies’ optimism on the economy was at their lowest levels in six months.

Key Focus ahead

Markets are poised for a big week ahead, with plenty of risk events lined up for release, including the BOE policy decision and US payrolls data. For today’s session, key highlight remains the Eurozone flash CPI report, with the core figures of more relevance, while German retail sales and UK net lending to individuals data will be also looked upon. In the NA session Canada’s RMPI data will be reported ahead of the US Chicago PMI and pending home sales.

Euro’s meteoric rise continues, nears weekly 200-MA, eyes EZ CPI and falling yield spread

Eurozone data due today at 9:00 GMT is expected to show the cost of living as represented by the consumer price index (CPI) rose 1.3% y/y vs. previous figure of 1.3%. The core figure is seen rising 1.2%. 

GBP/USD: Further upside likely ahead of BOE, NFP week?

Amid renewed demand for the US dollar across the board, the GBP/USD pair suffered minor losses in the Asian session, with the bulls slightly on the back foot ahead of the key events for this week - BOE policy decision and US payrolls data.

Key events for the week ahead: eyes on nonfarm payrolls - Nomura

Key events for the week ahead from around the world, previewed by analysts at Nomura...