Commodity currencies are broadly higher today, along with Sterling, riding on broad based rally in Asian stocks. The HSBC China Manufacturing PMI dropped below 50 neutral level to 49.4 in July, showing mild contraction. The data triggered hopes that China authorities will refrain from any implementing any new tightening measures and lifted sentiments in general. Rallies in AUD/USD and GBP/USD are impressive as both pair has taken out July's high already. However, Euro continues to lag behind as upside remains limited below 1.31 level. Manufacturing data will be the main focus today. In European session, we'll have Swiss retail sales and SVME PMI first, following by Eurozone PMI manufacturing final reading. As noted before, Sterling has been persistently strong recently and will face tests from some important data this week on validating the optimism for H2 outlook. Data from UK will start with PMI manufacturing today which is expected to drop slightly from 57.5 to 57.1 in July. From US, ISM manufacturing index will be the main focus and is expected to drop from 56.2 to 54.3 in July. AUD/JPY is the strongest pair today so far, tracking the 0.94% rally in Australian stocks. The strong rebound above 77.19 support suggests that recovery from 72.67 is still in progress. Such rise is viewed as part of the whole sideway consolidation pattern that started at 71.86. Further rise might still be seen towards 80.85 resistance and above. After all, we'll tend not to trade the choppy price actions inside 71.86/80.85 range. Rather, we'd look for selling opportunities near to 80.85 in anticipation of a downside break of 71.86 eventually. AUD/USD Daily Outlook Daily Pivots: (S1) 0.8984; (P) 0.9024; (R1) 0.9084; More AUD/USD's rally extends further to as high as 0.9105 so far today and and break of 0.9068 indicates that recent rally has resumed. Intraday bias is now on the upside for further rise towards 0.9380/9404 resistance zone. But we'd expect upside to be limited there to bring another fall to continue the medium term consolidation. On the downside, below 0.9019 minor support will turn intraday bias neutral first. Further break of 0.8905 support will argue that AUD/USD might have topped out already and will turn bias back to the downside for 0.8315 support. In the bigger picture, note that a medium term top is in place at 0.9404. Price actions from there are viewed as consolidation/correction to medium term up trend from 0.6008. Such consolidation/correction will continue below 0.9404 for a while and the path could be choppy and unpredictable. Though, note that a break of 0.8315 will argue that such correction is going to extend deeper to beyond 0.8066 support, possibly to 0.7702 key support. Economic Indicators Update GMT Ccy Events Actual Consensus Previous Revised 0:30 AUD TD Securities Inflation M/M Jul 0.10% -- 0.30% 7:15 CHF Retail Sales Y/Y Jun 4.10% 3.80% 7:30 CHF SVME-PMI Jul 64.8 65.7 8:00 EUR Eurozone PMI Manufacturing Jul F 56.5 56.5 8:30 GBP PMI Manufacturing Jul 57.1 57.5 14:00 USD ISM Manufacturing Jul 54.3 56.2 14:00 USD ISM Prices Paid Jul 55.3 57 14:00 USD Construction Spending M/M Jun

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