Quiet Movements in Asian Markets, Awaiting PMI Preliminary Results from Europe and the U.S.

Quiet Movements in Asian Markets, Awaiting PMI Preliminary Results from Europe and the U.S.

The Asian markets, with Tokyo absent, are showing overall quiet movements. USD/JPY is trading within a range from around 143.70 to 144.46, indicating a trend toward yen depreciation. Cross-currency pairs are also showing slight increases, with EUR/JPY rising from the low 160s to the low 161s, and GBP/JPY moving from the mid-191s to the low 192s. Meanwhile, Australia's PMI preliminary figures showed deterioration in both manufacturing and non-manufacturing sectors, yet AUD/JPY is being bought up from the high 97s to the high 98s. In the Asian equity markets, Australian stocks are softening, while stocks in China, Hong Kong, and New Zealand are showing a buying trend, reflecting stable risk sentiment.

As European and London participants hold back, yen-selling activity has paused. USD/JPY is around the low 144s, EUR/JPY in the high 160s, GBP/JPY in the high 191s, and AUD/JPY in the low 98s, experiencing slight adjustments.

Attention on PMI Preliminary Results and Future Monetary Policies

In the upcoming overseas market, the September PMI preliminary figures for the Eurozone, the UK, and the U.S. are set to be released. Last week, the Bank of England decided to keep its policy rate unchanged, while the recent ECB meeting saw a 25 basis point rate cut. Additionally, the U.S. FOMC implemented a significant 50 basis point rate cut, suggesting a return to normal rate cut increments in the future. This substantial cut is viewed as a precautionary measure by the market.

If the upcoming PMI preliminary figures align with the monetary policy stance, we could see market reactions such as euro selling, pound buying, and dollar selling.

Focus on Comments from U.S. Financial Officials

Today, Atlanta Fed President Raphael Bostic is scheduled to speak about the economic outlook, followed by Chicago Fed President Austan Goolsbee, who will provide insights on the economy and monetary policy. Both will have Q&A sessions planned, and following last week's FOMC, comments from U.S. financial officials regarding policies and economic forecasts will be open for discussion. It will be essential to watch for opinions on future rate cut pace and other related matters.

Key Point of Interest Today

Attention is focused on the U.S. manufacturing PMI, scheduled for release. I plan to monitor the movement of the U.S. dollar closely and aim for timing on potential dollar selling.