Asian Markets Are Open, What's The Focus Today?

 The US dollar moved weaker in early Asian session trading after being disappointed by readings of US manufacturing data showing slower -than -expected growth in July.

The ISM survey manufacturing index reported a decline to 59.5, compared to a bullish forecast of 60.9, and a previous reading of 60.6 last month. These readings indicate a slowdown in growth for the second consecutive month following a decline in demand and production.

At the time of writing, the dollar index, which measures the strength of the greenback dollar against a basket of major currencies, is trading at 92.06.

The decline also pushed US treasury yields 10 years lower to around February's lowest level of 1.15%, giving the yen strength to strengthen against the US dollar.

Meanwhile, the main focus of today's Asian session was on the Australian Central Bank (RBA) policy meeting which is expected to put pressure on the Aussie dollar following market expectations that the central bank will withdraw plans to ease stimulus following the worsening Covid-19 situation in Australia. .

At its July policy meeting, the RBA had announced it would reduce the government bond purchase rate to A $ 4 billion a week until at least mid-November from the current level of A $ 5 billion.

At the start of the Asian session, the Aussie dollar traded steady with limited movement, signaling investors were taking cautious measures ahead of the RBA’s policy announcement later in the day.

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