Forex Today: AUD tumbles on China PMI, focus on PMIs, ADP

The Asian session on Thursday was action-packed with a slew of key macro data reported from the Asia-pac. The Aussie was a big mover across the FX space, initially having spiked above 0.7450 levels on upbeat Aus capex and retail sales data. However, on the release of worse-than expected drop in the Chinese manufacturing PMI reading, the AUD/USD pair dived and surrendered 0.74 handle.

Meanwhile, cable was once again under pressure amid resurgent broad USD demand. The yen remained on the back foot amid risk-on rally in equities and higher oil prices.

Looking ahead, the European session will kick-off with the final manufacturing PMI reports from across the Euro area economies, while from the UK docket, we have the manufacturing PMI data due on the cards. The US calendar also appears quite eventful today, with the usual weekly jobless claims and ADP jobs report due ahead of the US open, while a set manufacturing PMIs will be published from Markit as well as ISM.

Main topics in Asia

Australia's CAPEX: 2nd estimate for 2017/18 higher-than-expected

Australian capex (private capital expenditure) for Q1 shows a capex 'headline' of +0.3% q/q vs 0.8% expected and -1% last (revised from -2.1%).

Australia's retail sales rebound beyond expectations in April

According to the latest data from the Australian Bureau of Statistics (ABS), Australia's April retail sales came in at +1.0% m/m vs +0.3% expected and -0.2% (revised lower) last.

China's May Caixin PMI dips into contraction, a big miss on expectations

China's Caixin manufacturing PMI for the month of May arrived at 49.6 vs 50.1 exp and 50.3 last, entering into contraction on the back of slower increases in output and new orders.

Fed’s Williams: 4 rate hikes possible if the US economy strengthens

More comments crossing the wires from San Francisco Fed President John Williams, as he continues to speak at an event in Seoul today.

BOJ’s Harada: BOJ to withdraw stimulus when 2 % inflation target is in sight

Comments from Bank of Japan (BOJ) monetary policy board member Yutaka Harada are crossing the wires once again, this time on the central bank’s stimulus exit strategy, when the 2% target is reached.

Key Focus ahead

Trump tweets he will announce Paris Accord decision on Thursday 1500 ET

The US President Trump tweets he will announce Paris Accord decision on Thursday 1500 ET, Livesquawk reports.

UK PMI and US ISM amongst market movers today – Danske Bank

The research team at Danske Bank suggests that today we have PMI releases for May in the UK, Norway, Sweden, Spain and Italy, and US ISM manufacturing which will be amongst market movers.

GBP/USD Forecast: stalls overnight sharp recovery move ahead of UK manufacturing PMI

USD/JPY Forecast: Flatter yield curve, focus on US ISM data