Earlier in the Day:

It was a relatively quiet Asian session on the economic data front this morning.

Economic data through the session included Japan and China service sector PMI numbers for July.

Outside of the numbers, geopolitical risk continued to provide direction in the wake Trump’s Thursday tweets and Friday’s sell-off.

For the Japanese Yen

The service sector PMI fell from 51.9 to 51.8 in July, which came short of a forecasted increase to 52.3. According to the Markit survey,

• New business from abroad steadied following a marked decline in June. That said, demand rose at a slower extent in July.

• While employment levels increased for a 31^st consecutive month, the rate of job creation fell to the weakest since October.

• Firms remained optimistic going into the 3^rd quarter, though the level of confidence slid to the lowest in nearly 2-years.

The Japanese Yen moved from ¥106.301 to ¥106.348 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.45% to ¥106.11 against the U.S Dollar

Out of China

The Caixin services PMI stood at 51.6 in July, falling from 52.0 in June to the lowest level in 5-months.  Economists had forecasted a hold at 52.0.

According to the July Caixin Composite Survey,

• New orders within the services sector supported further upward momentum across the private sector, in spite of orders rising at a slower pace.

• A rebound in new orders from overseas, within the services sector, also supported a pickup in new export orders at the composite level.

• Job creation across the services sector was modest as firms looked to manage costs in a softer business activity growth environment. At the composite level, there was a marginal reduction in headcount for a 3^rd consecutive month.

• Overall private sector confidence rose to a 3-month high in July. While confidence across the manufacturing sector improved from a June record low, it was service sector confidence that was key.

The Aussie Dollar moved from $0.67645 to $0.67695 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.44% to $0.6771.

Elsewhere

The Kiwi Dollar was down by 0.54% to $0.6501.

Risk aversion weighed through the Asian session, driving support for the Yen at the expense of the Aussie Dollar and Kiwi Dollar.

The Day Ahead:

For the EUR

It’s a relatively busy day ahead on the economic calendar. Key stats due out of the Eurozone include Spanish and Italian services PMI figures for June. While France and Germany’s finalized PMIs will have a limited impact, we would expect the Eurozone’s composite PMI to also influence.