Today we get the start of the PMI cycle from Australia, and PMIs from Japan and China also

Two Aussie manufacturing PMIs today kick it off:

2200 GMT CBA / Markit manufacturing PMI for January

  • prior 57.1

2230 GMT AiG manufacturing PMI, January

  • prior 56.2

Both have been strongly into expansion. Later in the week we get the services PMIs from the same two sources and the construction PMI from AiG

2300 GMT - Australia - CoreLogic house prices for January, prior -0.4% m/m

2350 GMT - Japan - international securities flows for the week ended January 26

0030 GMT - Australia - Q4 price indexes for imports and exports

  • Imports expected +1.5% q/q, prior -1.6%
  • Exports expected +2.0% q/q, prior -3.0%

The terms of trade data can provide a bit of a wiggle for the AUD

0030 GMT - Australia - Building permits data for December

  • expected -7.6% m/m, prior +11.7% (this is a volatile data set!)
  • expected +11.5% y/y, prior +17.1%
  • The building approvals data can be a bit of a market mover, I'll have more to come on this separately

0030 GMT - Japan - Nikkei / Markit manufacturing PMI for January. The final reading

The preliminary was 54.4

  • prior (December) 54.0

The December reading was a cracker, underscoring the improving Japanese economy:

  • Strongest since February of 2014
  • Output was at its strongest in nearly 4 years
  • Strong employment growth
  • Sharp expansion in new orders
  • Output price inflation accelerated to the fastest rate since October 2008

And, ICYMI, the Bank of Japan indicated (to me at least) a degree of restlessness to lay the groundwork for a reduction in stimulus (early days yet, though) with this from the 'Summary of opinions' of the January meeting:

  • There may be chance BOJ must mull adjusting level of yield targets if economy, price moves continue to improve

Previously the Bank was firm on no change to policy until the price target (2% inflation) was hit and stable ... here they introduce the idea that maybe they'll change as the economy improves (which its doing)

0145 GMT - China - Caixin / Markit manufacturing PMI for January

  • expected 51.5, prior 51.5

Yesterday we got the official PMIs for January from China:

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