Risk-On Market Environment Supports High-Beta Currencies, While JPY Declines Amid US Treasury Yield Recovery
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1️⃣ Asian stock markets closed mixed following the surge in COVID-19 cases in the Asian region, but the full approval of Pfizer’s vaccine boosted investor optimism.


1️⃣ USD declined further after weak PMI data. Preliminary readings showed the IHS Markit Manufacturing PMI in the United States declined to 61.2, while the IHS Markit Services PMI in the United States declined to 55.2 in August.

2️⃣ The NZD strengthened even as New Zealand’s trade balance turned into a deficit of NZD 402 million, from a surplus of NZD 425 million in the same month a year earlier. This is because investors are more optimistic about the recent vaccine news.

3️⃣ EUR/GBP: Both currencies are pressured by weaker economic data. Both Manufacturing and Services PMIs in the Eurozone and UK declined due to the rise of COVID-19 in the region.

4️⃣ Meanwhile, positive risk sentiment and a recovery in US Treasury yields could weigh on the JPY.


1️⃣ Crude oil prices dropped slightly on Wednesday after soaring around 8% in the last 2 days. WTI crude oil traded around $ 67 a barrel.

2️⃣ Gold traded around the $ 1,800 level, following concerns the spread of the COVID-19 variant of the Delta raised expectations that the Fed will delay its intention to reduce asset purchases.

Economic Data Focus On Today

1️⃣ New Zealand Trade Balance for July (06:45 Malaysia Time) — Bullish Prediction — Manufacturing PMI jumped in July.

2️⃣ German IFO Business Climate for August (16:00 Malaysia Time) — Bearish Prediction — German ZEW sentiment dropped in August.