China’s Caixin Manufacturing PMI and Reserve Bank of Australia rate decision were the top releases in Asian session.
Factory activity in China rose unexpectedly in July, expanding at the fastest pace in past four months, survey showed. Manufacturing PMI rose to 51.1 in July, well above forecast / June release at 50.4 , signaling that the world’s second-largest economy is momentum at the beginning of the third quarter.
Australia’s central bank stayed on hold on Tuesday, keeping the interest rates at 1.5%, as expected, marking a full year without changing rates. Policymakers are looking to put the economy on a sustainable footing, before changing policy and market observers suspect that the central bank could keep rates at current levels for some more time.
RBA pointed at rising Australian dollar which was up over 9% against its US counterpart in past two months. Strong Australian dollar will further compress inflation and weigh on growth outlook and employment, as inflation remains below RBA’s 2-3% target band .
Series on Manufacturing PMI data for a range of European countries is in focus in early hours of the European session.
Forecasts for Italian, French, German, EU and UK Manufacturing PMI’s in July are mainly unchanged from June’s readings, with releases due between 07:45 and 08:30 GMT.
Release of the Eurozone Q2 GDP is due at 09:00 GMT, with forecast at 0.6%, unchanged from the Q1 2017.
Solid recovery of Eurozone’s economy is expected to extend into the second quarter, with the ECB looking for stronger growth to support their attempts for starting tightening process.
In the American session, the focus is on PCE Price index release, due at 12:30 GMT. Core PCE index y/y is expected to tick lower to 1.3% in June, from 1.4% in May, while m/m figure is expected to stay unchanged at 0.1%.
US ISM Manufacturing PMI is expected to fall in July, according to the forecast at 56.5 vs 57.8 reading in June. Data is due at 14:00 GMT