Big data dump morning in Asia, most market focus was the November HSBC Manufacturing PMI, coming in at a 13-month high of 50.5 (prior 49.5, Flash 50.4). The HSBC number joins the MNI and CFLP Manufacturing PMIs in signalling expansion now.

Other data in chronological order:

  • New Zealand Q3 Terms of Trade -3.2% (prior -2.6%, expected -1.5%)
  • Aust. November AIG PMI 43.6 (vs 45.2 prior), 9th consecutive month below 50 for this measure …
  • Sth. Korea CPI -0.4% mom (prior -0.1%, expected -0.1%) – one benfit of a very strong currency then
  • Aust. November TD/MI Inflation Gauge +0.1% mom (prior +0.1%)
  • Japan Q3 Capital Spending +2.2% (prior +7.7%, expected +4.4%)
  • Japan Q3 Capital Spending excluding Software +2.4% (prior +6.6%, expected +1%)
  • Sth. Korea November Manufacturing PMI 48.16 (prior 47.37)
  • Australia October Retail Sales Flat (0.0% change mom) (prior +0.5%, expected +0.4%)
  • Australia November ANZ Job Advertisements -2.9% (prior +4.6%)
  • Australia Q3 Company Profits -2.9% (prior -0.7%, expected -3%)
  • Australia Q3 Inventories +1.1% (prior +0.6%, expected +0.4%)
  • China November Services PMI 55.6 (prior 55.5)
  • Japan Vehicle Sales for November -3.3% (prior -9.0%)

EUR a big mover today, with EUR/USD up from early indications around 1.2978 to 1.3047, shrugging off the weekend news of Moody’s downgrading ESM and EFSF & triggering stops above 1.3000 (nice round number) and again above1.3025. EUR/JPY too, a very strong session, to 107.50.

GBP/USD was better bid also, quietly putting on 40 points to 1.6048.

AUD/USD traded lower from a 1.0441 high, dropping hard on the poor Retail Sales figures to 1.0393, where we had buy orders.

NZD/USD too, was weaker, until the relatively upbeat monthly Treasury Report, followed by John Key’s comments at his weekly press conference saw it trade from 0.8171 lows back above the figure.

USD/JPY was range-bound; 82.27/51

  • Reminder: Aust – RBA meeting tomorrow (Tue. Dec 4); we will have their decision on a rate cut (or not) at 0330GMT