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Daily Pivots: (S1) 109.61; (P) 109.75; (R1) 109.92; More...

Range trading continues in USD/JPY and intraday bias remains neutral first. On the upside, break of 110.79 will resume the rebound from 108.71 to retest 111.65 high. On the downside, break of 109.10 will target 108.71 support first. Firm break there will resume the decline from 111.65 and target 38.2% retracement of 102.58 to 111.65 at 108.18 next.

In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. The pattern from 101.18 could still extend with another falling leg. Sustained trading below 55 day EMA will bring deeper fall to 107.47 support and below. Nevertheless, strong break of 111.71 resistance will confirm completion of the corrective decline from 118.65 (2016 high). Further rise should then be seen to 114.54 and then 118.65 resistance.

Market movers today

• Today it's time for Flash PMI for both the US and the Euro area for August. We look for a small decline in both numbers as the global manufacturing cycle has likely peaked as witnessed by the falling momentum in commodity prices lately and weaker Chinese PMI's.
• US existing home sales is also due today.
• Rest of the week focus will be on Jackson Hole Fed conference starting Thursday and we also get the German Ifo business survey for August. In the Nordics we get the Swedish GDP indicator and retail sales as well as Norwegian retail sales.

The 60 second overview

We are seeing a bit more positive market sentiment this morning with Asian equity markets rising combined with a slight rise in Treasury yields, although 10Y Treasury yields continue to range-trade around 1.25%. The dollar also weakened very modestly. The rebound in the equity market is mainly seen as investors "dip buying" after the recent decline and while we wait for more information on the rise of the infections in the global economy as well as the comments from the Federal Reserve Chairman at the Jackson Hole conference, that is taking place this week.

There is plenty of economic data the week, where we begin with the PMIs for the Euro area and US. Furthermore, there is German IFO indicator, US GDP numbers on Thursday and US personal income and spending data on Friday.

Bitcoin is close to trading above USD 50.000 again since it was down to USD 30.000 back in July. In Germany, Chancellor Merkel's party slumped to the lowest number in the polls ahead of the German election, while the Social democrats rise to highest level of support in four years. CDU/CSU is down to 22%, while SPD rose 3% to 22% and are now at level with CDU/CSU.

In Sweden, PM Stefan Lofven is stepping down after 7 years as prime minister. This was highly unexpected and he will end his term in November as both PM and leader of the Social Democrats at the party congress. Finance Minister Magdalena Andersson is seen to be the front-runner to replace him and will most likely become the new PM.

Equities: Equities recouped some of the losses on Friday. Despite the kickback, the accumulated loss amounted to -1.5% for the week (MSCI World). Defensives took a breather on Friday but in its place investors bought into quality, while value cyclicals and banks remained laggards. In the US, S&P 500 closed up 0.8%, Dow 0.7%, Nasdaq 1.2% and Russell 2000 1.7%. Implied volatility took a leg lower, with VIX closing in south of 20. Asian markets are bouncing around 2% this morning with tech rebounding. US futures point to a more modest but green opening.

FI: 10Y US Treasuries continue to trade in a tight trading range ahead of the Jackson Hole conference this week. The focus today is on the PMI data for US and the Euro area, which is expected to show that the PMI has peaked. This should keep Treasuries and Bunds range bound, while the ECB QE will continue to tighten spreads between core and semi-core EU govts.

FX: For EUR/USD, attention will turn to the release of manufacturing PMIs. There is likely further downside risk for EUR/USD and EUR/JPY alike. Swedish politics is also in the spotlight.

Credit: There were only small moves in credit on Friday where iTraxx Xover tightened 0.8bp (to 237bp) and Main closed only 0.1bp tighter (in 47bp). Both IG and HY bonds were unchanged.

Nordic macro

Swedish PM Stefan Löfven announced on Sunday that he resigns as chairman of the Social Democrats and thus PM, at the party congress on 3-7 November 2021, less than a year before next election (11 September 2022). The process to find a successor has started and the nominating committee will present their candidate ahead of the congress. Who takes over? Current FM Magdalena Andersson is favourite runner-up. Other candidates are Mrs Hallengren, Mr Shekarabi, Mr Damberg and Mr Ygeman, all members of the government, are also up there. A new PM will be elected in the midst of hectic and difficult budget negotiations (where Andersson - if elected her successor - plays a key role), a budget that is planned to be voted on in late November/early December. The government's budget runs a big risk of not being accepted by the Riksdag, and the New PM might have to govern on the opposition's budget, not a smooth start in office, but also what Löfven on occasions has been forced/accepted to do. That precarious risk underlines the fragile situation for the government that has become even weaker after the political turmoil this summer. We have an extremely interesting, and uncertain, political year ahead of us, something markets should at least keep one eye on.

Daily Pivots: (S1) 0.7113; (P) 0.7134; (R1) 0.7162; More...

Intraday bias in AUD/USD is turned neutral with 4 hour MACD crossed above signal line. In case of another fall, we'd continue to look for strong support from 0.6991/7051 support zone to bring rebound. On the upside break of 0.7288 support turned resistance will indicate short term bottoming, and turn bias back to the upside for stronger rebound.

In the bigger picture, rise from 0.5506 medium term bottom could have completed at 0.8006, after failing 0.8135 key resistance. Correction from there could target 0.6991 cluster support (38.2% retracement of 0.5506 to 0.8006 at 0.7051). We'd look for strong support from there to bring rebound. However, sustained break of this level would argue that the whole medium term trend has indeed reversed. Deeper decline would be seen to 61.8% retracement at 0.6461.

General trend

• Hang Seng rises after Friday’s drop [TECH index rebounds by over 4%].
• Shanghai Composite extended gains during morning trading [IT index outperforms; Consumer Staples index pared gain after prior drop].
• Nikkei 225 has also extended gains [Automakers rebound].
• S&P ASX 200 has lagged [Financials underperform, Resources index rises].

Headlines/Economic Data

Australia/New Zealand

• ASX 200 opened %.
• ZEL.NZ Received proposal from Ampol ar A$3.78/shr, A$5.2B; agrees period of due diligence and exclusivity.
• SKI.AU Confirms to be acquired by KKR, Ontario Teachers’ and PSP Investments consortium at A$2.95/shr.
• (AU) AUSTRALIA AUG PRELIMINARY PMI MANUFACTURING: 51.7 V 56.9 PRIOR (15th consecutive month of expansion, lowest since June 2020).
• (NZ) New Zealand PM Ardern expected to again extend lockdown past the Aug 24th planned lifting with 35 new local infections today (total now 107), will meet with press at 16:00 today.
• (NZ) Reserve Bank of New Zealand (RBNZ) Chief Economist Ha: Delta variant raises uncertainty, not a game changer, NZD performing as usual.

Japan

• Nikkei 225 opened +0.7%.
• (JP) JAPAN AUG PRELIMINARY PMI MANUFACTURING: 52.4 V 53.0 PRIOR (7th month of expansion).
• (JP) Japan Cabinet approval rating -3.8ppt to 25.8% - ANN poll.
• (JP) Said that Japan PM Suga will seek a dissolution of the lower house in beginning of October – Press.
• (JP) Opposition-backed candidate Takeharu Yamanaka won the Yokohama mayoral elections - Japanese press.
• (JP) Japan PM Suga: Top priority is fighting spread of coronavirus, humbly accepts the results of Yokohama Election.
• (JP) Japan July Crude Steel Production 8.01Mt v 8.11Mt m/m, +32.5% y/y.

Korea

• Kospi opened +0.9%.
• (KR) South Korea Aug 1-20 Exports y/y: 40.9% v 32.8% prior; Imports y/y: 52.1% v 46.1% prior; Chip Exports y/y: 39.8% v 33.9% prior.

China/Hong Kong

• Hang Seng opened +1.3%; Shanghai Composite opened +0.3%.
• (CN) China Sec Journal: Said that certain provinces in China will push back issuance of special govt bonds to Dec.
• (CN) China regulators are considering forcing Chinese companies with lots of user data to hand over management and supervision of their data to a 3rd party firm if they want US IPO – press.
• (CN) China Ministry of Commerce (MOFCOM): China to sign additional free trade agreements and also 'upgrade' existing agreements.
• (CN) China market regulator (SAMR) said to have halted over 40 IPOs in Shanghai and Shenzhen [timing uncertain], cites probe into an investment bank and law firm - US financial press.
• (CN) China PBOC sets Yuan reference rate: 6.4969 v 6.4984 prior.
• (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior.

North America

• (US) Parts of the mid-Atlantic and Northeast being impacted by heavy rain from hurricane/tropical storm Henri.
• (US) Treasury Sec Yellen said to have told senior White House officials she is in favor of reappointing Fed Chair Powell - US press.
• (UK) PM Johnson announces will convene special G-7 meeting on Tuesday about Afghanistan, expected to ask US President Biden to delay withdrawal of US forces - press.

Europe

• (SE) Sweden PM Lofven to step down after 7 years in November, also will step down as leader of the Social Democrats (not expected).
• (DE) ECB's Schnabel (Germany): Expect inflation to keep rising until the end of the year, especially in Germany, but expect it to fall "significantly" in 2022 - German press.
• (UR) German chancellor Merkel says Ukraine should remain a gas transit state after 2024 and construction of Nord Stream 2; Would impose new sanctions on Moscow if necessary, in reference to potential use of Nord Stream 2 as a "weapon".

Levels as of 01:15ET

• Hang Seng +1.8%; Shanghai Composite +1.2%; Kospi +1.5%; Nikkei225 +1.9%; ASX 200 +0.4%.
• Equity Futures: S&P500 +0.4%; Nasdaq100 +0.4%, Dax +0.5%; FTSE100 +0.3%.
• EUR 1.1724-1.1693; JPY 109.93-109.72 ;AUD 0.7165-0.7121; NZD 0.6856-0.6822.
• Commodity Futures: Gold +0.3% at $1,789/oz; Crude Oil +1.8% at $63.24/brl; Copper +0.9% at $4.18/lb.

STOCKS

Equities have recovered a bit after seeing a sharp fall last week. We may expect the bounce to hold for now and take the indices to higher levels in the near term.

Dow (35120.08, +225.96, +0.65%) has bounced back well from low of 34867 seen last week. While the support holds, a rise to 35500-35750 cannot be negated. As mentioned last week, the corrective dip was indeed short lived.

DAX (15808.04, +42.23, +0.27%) has held above 15600 and while that holds, a rise to 16000 is possible again in the coming sessions.

Nikkei (27479.85, +466.60, +1.73%) has bounced back sharply after making a low of 26954.81 on Friday. while above 27000 the view is bullish to see a test of 28000 eventually.

Shanghai (3466.72, +39.39, +1.15%) is holding above 3400. A bounce towards 3550-3600 is possible from here..

Nifty (16450.50, -118.35, -0.71%) tested 16376.05.on Friday but bounced back from there. The index has support at 16350 and deeper support at 16200 which can hold and limit the downside. While above 16200/350, the view is bullish to see 16500-16600.

Sensex (55329.32, -300.17, -0.54%) has come down in line with our expectations but bounced back before falling to levels below 55000. The support at 54500-54000 continues to remain crucial but while above 55000, view is bullish towards 56000 in the coming sessions.

COMMODITIES

Slight recovery seen in commodities but we will have to see if it is a temporary corrective bounce within the overall medium term downtrend or whether the rise may continue to hold. Brent and WTI have risen well and have scope for a test of $68-69 and $64-66 respectively before again declining lower. Similar interim resistances are seen on Gold, Silver and Copper near 1800/10, 23.50/60 and 4.20 respectively which needs a close watch.

Brent (65.89) and WTI (62.70) have both bounced slightly after testing 64.60 and 61.74 respectively. Overall view remains bearish for a fall towards $60 on Brent and $58 on WTI but the small corrective bounce can hold for now and lead to a rise to $68-69 and $64-66 before declining lower again. Overall medium term trend still points to the downside.

Gold (1787.30) has bounced from 1778 and is likely to remain within 1810-1770 region for now. Note crucial immediate resistance near 1800/10 which will have to break on the upside for Gold to rise higher. Else a sharp fall could be on the cards.

Silver (23.12) has bounced slightly and could test 23.50/60 before again declining lower towards 22.50 or even 22. A break above 23.50/60 will have to be seen and sustained to negate further fall below 23. Watch price action near 23.

Copper (4.1815) dropped briefly below 4 but managed to bounce back in line with our expectations. A test of 4.20 is likely in the next few sessions but whether Copper will break above that and sustain will have to be seen. Failure to rise above 4.20 will drag it back towards 4.0-3.80 in the near term.

FOREX

Dollar Index has dipped from 93.73 impacting most currency pairs to strengthen slightly against the Dollar. EURJPY, Aussie, Pound, Chinese Yuan and Rupee can all strengthen a bit against the Dollar but we would have to keep a close watch to see if this would sustain or is short lived.

Dollar Index (93.32) tested 93.73 last week before falling from there. A dip to 93.20 looks possible followed by a bounce back towards 94-94.50 in the medium term. Watch price action near 93.20.

Euro (1.1716) has bounced from 1.1664 and could head towards 1.1750-1.1780 in the near term. A broad range of 1.18-1.1650 may hold for the near term. It would be important to see if the currency manages to rise past 1.1770-1.180 or falls back from those levels.

EURJPY (128.69) is holding above support at 128 which if holds could produce a corrective rise towards 129 in the near term. Unless a decline below 128 is seen, we will not bring in a possible fall to 126 into the picture. For now a ranged movement within 128-129 looks possible.

Dollar-Yen (109.82) continues to fluctuate within 110.50-109 zone. We may expect the range to hold for some more time before the pair gives more clarity on further direction an breaking either side of the range.

Aussie (0.7158) has bounced too from 0.71 in line with other currencies. A rise to 0.72-0.7250 is possible.

Pound (1.3643) is holding above 1.36 and while that holds, a bounce to 1.37-1.3750 looks likely in the near term. Immediate view is bullish while above 1.36.

USDCNY (6.4903) has fallen sharply from 6.5040. A test of 6.48/47 can be possible in the near term.

USDINR (74.39) can fall back towards 74.20 today as most currency pairs have recovered a bit compared to sharp movements seen last week. While below 74.40/45, a test of 74.30/20 looks likely again.

INTEREST RATES

The US Treasury yields have inched up on Friday but are likely to dip again to test their crucial supports while they remain below their immediate resistances. The price action near the supports will need a close watch to see if the yields can bounce-back or not. The US Federal Reserve Chairman, Jerome Powell’s speech at the Jackson Hole Symposium on Friday this week will be a crucial event to watch to see if any hint on tapering and rate hike is given. The German yields are poised at their crucial support. Inability to bounce from here can drag the yields without seeing a corrective rally that we had been expecting. The 5Yr GoI has risen-back sharply on Friday and can move up further if the bounce sustains.

The US 2Yr (0.23%) and 5Yr (0.79%), (1.27%) and the 30Yr (1.87%) Treasury yields have inched up on Friday. We retain our view of seeing a test of 1.8% on the 30Yr while it remains below 1.9%. Similarly, the 10Yr can test 1.18% while it trades below 1.3%. As mentioned on Friday, the price action at 1.8% (30Yr) and 1.18% (10Yr) will be very important to watch whether the yields can bounce-back from there or not.

The German 2Yr (-0.76%), 5Yr (-0.75%), 10Yr (-0.50%) and 30Yr (-0.06%) yields remain lower. The 10Yr is at the crucial support level of -0.5% and the 30Yr is just below the key -0.05% support. Inability to bounce-back sharply from here will negate our view of seeing a corrective rally before a fresh fall is seen. In turn the overall downtrend can continue further and drag the yields to -0.6% (10Yr) and -0.2% (30Yr) from here itself.

The 5Yr GOI (5.6902%) extended the fall as expected towards 5.62% and had risen-back sharply from the low of 5.6281% on Friday. A further rise to 5.73%-5.74% and 5.76% is possible in the coming days while this bounce sustains.

Key Highlights

• EUR/USD extended its decline before it found support near 1.1665.
• A major bearish trend line is forming with resistance near 1.1725 on the 4-hours chart.
• GBP/USD broke the 1.3720 support and tested the 1.3600 zone.
• USD/JPY is approaching a major breakout with resistance near 110.00.

EUR/USD Technical Analysis

The Euro remained in a bearish zone below 1.1800 against the US Dollar. EUR/USD extended its decline below 1.1720 and tested the 1.1665 zone.

Looking at the 4-hours chart, the pair traded as low as 1.1663. It is now attempting an upside correction above the 1.1680 level. It climbed above the 23.6% Fib retracement level of the downward move from the 1.1804 high to 1.1663 low.

It is now approaching the 1.1720 resistance, and it is well below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

There is also a major bearish trend line forming with resistance near 1.1725 on the same chart. The next resistance sits near 1.1735 or the 50% Fib retracement level of the downward move from the 1.1804 high to 1.1663 low.

The main resistance is near the 1.1750 zone. A successful break and close above the 1.1750 zone could set the pace for a larger increase in the coming sessions.

On the downside, the pair is likely to remain stable above 1.1665. A downside break below 1.1665 could start another decline. The next major support is near the 1.1600 level.

Economic Releases

• Germany’s Manufacturing PMI for August 2021 (Preliminary) - Forecast 65.0, versus 65.9 previous.
• Germany’s Services PMI for August 2021 (Preliminary) - Forecast 61.0, versus 61.8 previous.
• Euro Zone Manufacturing PMI for August 2021 (Preliminary) – Forecast 62.0, versus 62.8 previous.
• Euro Zone Services PMI for August 2021 (Preliminary) – Forecast 59.8, versus 59.8 previous.
• UK Manufacturing PMI for August 2021 (Preliminary) – Forecast 59.5, versus 60.4 previous.
• UK Zone Services PMI for August 2021 (Preliminary) – Forecast 59.0, versus 59.6 previous.
• US Manufacturing PMI for August 2021 (Preliminary) – Forecast 63.0, versus 63.4 previous.
• US Zone Services PMI for August 2021 (Preliminary) – Forecast 59.9, versus 59 .9 previous.

Daily Pivots: (S1) 1.2709; (P) 1.2770; (R1) 1.2890; More...

USD/CAD's retreat from 1.2947 extends lower today but intraday bias remains neutral first. We'd expect downside to be contained by 4 hour 55 EMA (now at 1.2660) to bring rebound. Break of 1.2947 will resume the rise from 1.2005 to 1.3022 fibonacci level next. Nevertheless, sustained trading below 4 hour 55 EMA will bring deeper fall back to 1.2421 support.

In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). It should have completed after hitting 1.2061 (2017 low) and 50% retracement of 0.9406 to 1.4689 at 1.2048. Sustained break of 38.2% retracement of 1.4667 to 1.2005 at 1.3022 will pave the way to 61.8% retracement at 1.3650 and above. Overall, medium term outlook remains neutral at worst with 1.2048/61 support zone intact.

Asian markets are staging a strong rebound today, despite poor economic data out of Japan and Australia. Investors are probably reassessing the timing of Fed's tapering, which would be delayed by the current surge in Delta variant. Meanwhile, China reported zero case of local transmission of COVID-19 for the first time since July. Dollar, Yen and Swiss Franc are paring some of last week's gains. Canadian Dollar leads commodity currencies higher.

Technically, we'll pay some attention to the development in Gold today. It has been rather resilient last week despite the strong rise in Dollar. A break of 1795.42 will resume the rebound from 1682.60 and put 1800 handle to immediate focus. Sustained trading above 1800 would raise the change of bullish reversal. Further break of 1832.47 resistance could extend the rally to 1916.30 resistance. That, if happens, might signal a return to weakness in the greenback.

In Asia, at the time of writing, Nikkei is up 1.73%. Hong Kong HSI is up 2.09%. China Shanghai SSE is up 1.13%. Singapore Strait Times is up 0.09%. Japan 10-year JGB yield is up 0.010 at 0.022.

Japan PMI composite dropped to 45.9 in Aug, weaker demand and sustained supply chain pressures

Japan PMI Manufacturing dropped from 53.0 to 52.4 in August, below expectation of 53.4. PMI services dropped sharply from 47.4 to 43.5, worst in 15 months. PMI Composite dropped from 48.8 to 45.9, worst since August 2020.

Usamah Bhatti, Economist at IHS Markit, said: "The Japanese private sector economy saw business conditions deteriorate further midway through the third quarter of the year, with flash PMI data signalling a quicker decline in business activity in August. The latest contraction was the quickest recorded since August 2020, while incoming business was reduced at the sharpest pace for seven months. Survey respondents commonly attributed weaker demand to ongoing COVID-19 restrictions, coupled with sustained supply chain pressures."

Australia PMI composite dropped to 15-month low, heavily impacted by restrictions

Australia PMI Manufacturing dropped from 56.9 to 51.7 in August, hitting a 14-month low. PMI Services dropped from 44.2 to 43.3, a 15-month low. PMI Composite dropped from 45.2 to 43.5, also a 15-month low.

Jingyi Pan, Economics Associate Director at IHS Markit, said: "Australia's private sector remained stuck in decline in August... as activity remained heavily impacted by current mobility restrictions brought about by the spread of the COVID-19 Delta variant. Not only were demand and business activity hit, employment conditions also deteriorated, with private sector staffing levels falling for the first time since October 2020... The one bright spot had been an improvement in the outlook amongst Australian private sector firms in August, with hopes of an improvement in the COVID-19 situation expected to spark an eventual rebound for the Australian economy."

Fed Chair Powell unlikely to deliver something substance at Jackson Hole

Fed Chair Jerome Powell's speech in Jackson Hole symposium will be the highlight of the week. But he's actually unlikely to deliver anything ground breaking. Instead, focuses would be on comments from other Fed officials, in particular the known hawks, regarding the timing of tapering. Some of them could follow Robert Kaplan's step and turn more cautious.

Meanwhile, PMI data would be closely watched to gauge sentiments, together with Germany Ifo business climate. Other economic data like US durable goods orders, personal income and spending, PCE inflation will be featured. New Zealand retail sales and trade balance, and Australia retail sales could also trigger some volatility. Here are some highlights for the week:

• Monday: Australia PMIs; Japan PMI manufacturing; Eurozone PMIs; UK PMIs; US PMIs, existing home sales.
• Tuesday: New Zealand retail sales; Germany GDP final; US new home sales.
• Wednesday: New Zealand trade balance; Germany ifo business climate; Swiss Credit Suisse economic expectations; US durable goods orders.
• Thursday: Japan corporate services price index; Australia private capital expenditure; Germany Gfk consumer climate; Eurozone M3 money supply, ECB meeting accounts; US GDP, jobless claims.
• Friday: Japan Tokyo CPI, Australia retail sales; Germany import prices; Canada IPPI and RMPI; US goods trade balance, personal income and spending, wholesale sales.

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2709; (P) 1.2770; (R1) 1.2890; More...

USD/CAD's retreat from 1.2947 extends lower today but intraday bias remains neutral first. We'd expect downside to be contained by 4 hour 55 EMA (now at 1.2660) to bring rebound. Break of 1.2947 will resume the rise from 1.2005 to 1.3022 fibonacci level next. Nevertheless, sustained trading below 4 hour 55 EMA will bring deeper fall back to 1.2421 support.

In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). It should have completed after hitting 1.2061 (2017 low) and 50% retracement of 0.9406 to 1.4689 at 1.2048. Sustained break of 38.2% retracement of 1.4667 to 1.2005 at 1.3022 will pave the way to 61.8% retracement at 1.3650 and above. Overall, medium term outlook remains neutral at worst with 1.2048/61 support zone intact.

Economic Indicators Update

Japan PMI Manufacturing dropped from 53.0 to 52.4 in August, below expectation of 53.4. PMI services dropped sharply from 47.4 to 43.5, worst in 15 months. PMI Composite dropped from 48.8 to 45.9, worst since August 2020.

Usamah Bhatti, Economist at IHS Markit, said: "The Japanese private sector economy saw business conditions deteriorate further midway through the third quarter of the year, with flash PMI data signalling a quicker decline in business activity in August. The latest contraction was the quickest recorded since August 2020, while incoming business was reduced at the sharpest pace for seven months. Survey respondents commonly attributed weaker demand to ongoing COVID-19 restrictions, coupled with sustained supply chain pressures."

Full release here.

Australia PMI Manufacturing dropped from 56.9 to 51.7 in August, hitting a 14-month low. PMI Services dropped from 44.2 to 43.3, a 15-month low. PMI Composite dropped from 45.2 to 43.5, also a 15-month low.

Jingyi Pan, Economics Associate Director at IHS Markit, said: "Australia's private sector remained stuck in decline in August... as activity remained heavily impacted by current mobility restrictions brought about by the spread of the COVID-19 Delta variant. Not only were demand and business activity hit, employment conditions also deteriorated, with private sector staffing levels falling for the first time since October 2020... The one bright spot had been an improvement in the outlook amongst Australian private sector firms in August, with hopes of an improvement in the COVID-19 situation expected to spark an eventual rebound for the Australian economy."

Full release here.