Forex Today: AUD. NZD ignores solid China PMI, EZ, UK PMIs – Up Next

Risk-on sentiment remained the underlying theme in Asia on Monday, although the Antipodeans failed to benefit, despite stronger Chinese Caixin manufacturing PMI data, in the wake of a broad based US dollar recovery and rallying Treasury yields. As a result, the USD/JPY pair staged a sharp pullback, while renewed yen weakness on the back of local election loss by Japan PM Abe’s ruling party LDP, further collaborated to the bounce in the major.

Heading into Europe, focus remains on the final manufacturing PMI reports from across the Euro area economies and UK manufacturing PMI release. From the US docket, a set of manufacturing PMI reports from ISM and Markit will be closely eyed for fresh impetus. Besides, BOE Governor Carney’s speech is also on the schedule at 12GMT.

Main topics in Asia

Japanese PM Abe's LDP suffers major defeat in Tokyo Metropolitan Assembly election

Japanese manufacturing PMI shows growth slowed in June, price pressures remained elevated

China's June Caixin PMI recovers 50 mark, stronger increases in production and orders

Saudi-led bloc agree to extend Qatar’s deadline by 48 hours

Key Focus ahead

EUR/USD on the offers, but keeps 1.1400 ahead of PMIs

Global PMIs and euro area unemployment amongst market movers today – Danske Bank

UK: Manufacturing PMI to print 55.7 in June – TDS

US ISM Manufacturing preview: Index to remain near the 55 mark - Wells Fargo