* RBA Statement of Monetary Policy dovish in tone
* Chinese export and credit growth disappoint in July
* Singapore GDP weaker than expected
* Canadian employment likely weak
What to watch for today
EUR: French production. French industrial production data should provide further evidence of the depth of the collapse of activity in the core of the euro area in Q2. Consensus is looking for a flat reading on the month for manufacturing after the steep 1%mom drop in May and 0.9% drop in April. Evidence of a deepening slump in activity should support expectations for further ECB easing, keeping the EUR heavy even as risk sentiment improves. CAD: Soft jobs growth here too. We expect another weak reading on Canadian employment, with our +5k forecast weaker than the +10k consensus and potentially marking a third consecutive month of less than 10k in job gains. Our economist is also watching hours worked for a possible decline. We think risks of a housing-correction-driven slowdown in Canada are high and don’t see scope for USDCAD to extend its break below parity. We continue to target USDCAD at 1.03 on a three-month basis.
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