Asian equities could trade on the backfoot following a negative month-end session on Wall Street, with most sectors closing in the red. For the session ahead, traders will be on the lookout for the regional PMIs and the Chinese Caixin Manufacturing PMI after the better-than-expected official PMI data yesterday. Traders are also eyeing the Yuan as it traded firmer vs the USD and a stronger PBoC fixing than expected, which helped offset any geopolitical worries with Taiwan sending more warning shots at drones.
On the macro front, some tailwinds for risk assets could materialise in the region as reports noted that China’s Cabinet deployed measures to boost effective demand to keep the economy operating within an appropriate range and strive for the best results. Also, reports note that China is to fully implement its policies package to stabilise the economy through reforms and will release detailed policy rules by early September. The major macro event for global markets will be Friday’s US Nonfarm payrolls data, with participants waiting to gauge how aggressive Fed’s monetary policy could move into year-end.
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© 2019 High Leverage FX - All Rights Reserved.