Will the Chinese rout show signs of subsiding?

• Although this week is a particularly busy one, much of the focus will remain on China and how it can reignite its economy. Since the devaluation of the yuan, all commodity currencies have been struggling, and it will only be when the Chinese sort out their markets that we will see any real recovery. This morning, China announced that its manufacturing sector is contracting and slipped to a three year low last month.
• It’s looking like a busy week ahead for the commodity currencies. The Reserve Bank of Australia (RBA) last night voted to keep interest rates on hold, stating it was appropriate to keep monetary policy accommodative. The hectic pace continues, with growth, trade balance and retail sales data released from Australia on the following days.
• Friday will be the busiest day for the Canadian dollar, with the release of the Canadian unemployment rate and the Ivey Purchasing Managers’ Index (PMI).

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