Safe haven assets were once again on the forefront as North Korea launched fresh missile tests. The skirmishes continued with South Korea following up with military drills while Japan engaged in building international support. Following the tests that occurred on Sunday, the US dollar was seen on the back foot as a result.
On the economic front, data yesterday showed that the UK’s construction PMI fell to a 12-month low in August at 51.1. The British pound was slightly weaker on the news but managed to hold on to the gains from last week. Earlier today, the Reserve Bank of Australia’s monetary policy meeting saw the central bank holding interest rates steady. Later in the week, the quarterly GDP and monthly retail sales data from Australia is expected. RBA Governor Lowe is also scheduled to speak during the day.
Looking ahead, the UK’s services PMI will be coming out today. Forecasts point to a modest print of 53.5 in August, slightly lower than July’s 53.8. In the US, the Fed’s Brainard is scheduled to speak followed by Kashkari and Kaplan. The US factory orders data is also expected with forecasts point to a 3.3% contraction.
