Forex Today: USD bears take a breather in Asia, PMIs, NFP in spotlight

Markets came to a standstill in Asia this Friday, as a typical pre-NFP trading environment persisted, leaving most majors almost flat-lined. However, the CAD emerged the top performer, gaining nearly 0.22% against its American counterpart, as the bulls continue to cheer solid Canadian GDP report.

Meanwhile, the Asian equities kicked-off Sept on a positive note, tracking overnight gains on the Wall Street and in response to upbeat Chinese manufacturing PMI data. Among other related markets, oil turned negative and reversed a part of yesterday’s extensive rally, while gold remained buoyed amid North Korea tensions and expectations of dismal US NFP report.

Main topics in Asia

NZ terms of trade up 1.5% in Q2 2017 - Westpac

Michael Gordon, Research Analyst at Westpac, notes that NZ terms of trade rose 1.5% in the June quarter, falling just short of a record high.

China’s Communist Party Congress begins October 18th

The Chinese authorities are finally out with the date for the twice-a-decade China’s Communist Party Congress that begins October 18th.

China's August Caixin PMI unexpectedly rises, strongest since Feb

China Caixin Manufacturing PMI for August came at 51.6 vs 50.9 exp and 51.1 last, with Caixin's summary noting that new business rose at quickest rate for over three years.

Chinese Yuan hits 14-month high

The onshore Yuan exchange rate [CNY] rose 0.2% to 6.5783 per dollar, the strongest level since June 2016 after the PBOC firmed up the trading band and the latest Caixin manufacturing PMI bettered estimates. 

Japan’s FinMIn Aso cancels his trip to visit US VP Pence

Japan’s Finance Minister Taro Aso is out on the wires now, via Reuters, announcing that he has cancelled his trip to visit the US Vice-President Pence this month, as cites the North Korea situation risk as the main reason behind calling off the trip.

Key Focus ahead

Heading into Europe, the calendar remains quite eventful, with a raft of final manufacturing PMI reports due on the cards from across the Euro area economies, while the UK manufacturing PMI report will hold more significance for the EUR, GBP traders.

The US docket too holds a plenty of risk events today, however, the US labour market report will emerge the main market moving event. Also, of note remains the US ISM manufacturing PMI and revised consumer sentiment.

EUR/USD: Will it regain 1.2000 on US payrolls?

The EUR/USD pair managed to keep 1.19 handle in the Asian session, after the rebound ran into resistances located shy of 5-DMA at 1.1930, as the bulls take a breather heading into the US jobs data release due on the cards later today.

GBP/USD - Is the bond yield spread positioned for strong UK PMI?

Higher low - Cable’s sharp recovery from the low of 1.2852 yesterday has left a higher lows pattern on the daily chart. The spot closed at 1.2929 and extended gains to a high of 1.2947 in the Asian session today. 

GBP/USD Forecast: slim chances of breaking below 1.28 mark, UK PMI and NFP in focus

The pair now seems to have entered a consolidation phase, just below mid-1.2900s as traders now look forward to the release of UK Markit manufacturing PMI, which is expected to come-in at 55.0 for August as compared to previous month's reading of 55.1. 

US: Payrolls and average hourly earnings to miss estimates – Goldman Sachs

Economists at Goldman Sachs offer their thoughts on what they expect fromAugust’s NFP report that will be released at 1230GMT today.