Today kick starts the month of reporting with ISMS Manufacturing PMI data in the US tonight. However before we get into that we should start with the AUD/USD which will undoubtedly be the talk at the water fountain. After hitting a high of 0.7228 a high not seen since February 2019, we saw it pull back to 0.7130. However the pair still held it’s 6 week positive return. But with another 429 new cases in Victoria and extreme new stage four restrictions under a “state of disaster” been declared, could see the bulls flock in and some profit taking continue.
ISM’s Manufacturing PMI data from the US will be the talk of the town tonight with expectations from economist that we will see a dropping in PMI to 48.4 from 52.6. A worse-than-expected reading could revive concerns over a sluggish recovery and put additional pressure on the USD’s.