Wall Street plunged yesterday after slowing U.S. factory activity on the heels of a dire revenue warning from Apple fuelled fears of a global economic slowdown.
The US Fed is likely to be concerned with slowing momentum in the manufacturing sector, but will be looking at Monday’s release of the non-manufacturing index as well, which represents a much larger share of the economy, and at the labour market.
Aussie dollar’s initial bounce from the market plunge saw the pair recover in the sell-off aftermath. The US Dollar suffered losses following a disappointing ISM Manufacturing report, allowing the Aussie a brief chance to claim further gains through yesterday’s US session. US dollar was flat into the close in European and North America markets, in the consolidation of the flash crash that occurred in yesterday’s early Asian session, taking USD/JPY down to 105 level.