Asian shares floundered On Monday as bad Chinese data brought back fears of weakening growth in the world's second largest economy. China's factory activity fell for the third straight month in September in the official survey, while in an independent survey; it fell for the eighth straight month. Japan's Nikkei fell a heavy 2.06%, while Australia's S&P\ASX 200 index dropped 1.27%. India's Nifty index lost 0.50%. Chinese shares were firm however, as traders hope the weak data would bring more easing by the central bank. China's Shanghai index fell a meager 0.02%, while CSI 300 index rose 0.03%.
Dollar retreated tentatively, with the dollar index DXY falling 0.15% to 96.84. Dollar was down 0.21% against Euro at 1.1027. Against Yen it dropped 0.22% to 120.37. It was almost flat against Sterling at 1.5429.
Yen was firm, breaking a three-day bull run by Sterling to trade at 185.68. Against Euro it was unchanged at 132.71.
Crude oil prices posted mixed results in early Monday trading, with Brent futures for December gaining 11 cents, or 0.22% to $49.57 a barrel. U.S. futures fell 22 cents, or 0.47% to $46.37 a barrel.
For commodity currencies, Canadian dollar was flat after a positive run last week; it last traded at C$1.3072. Australian dollar was up slightly at $0.7137.
Spot gold was down, losing 60 cents, or 0.05% to $1,140.90 an ounce. Silver slid 6 cents, or 0.36% to $15.51 an ounce.
From the Euro zone, Spanish manufacturing PMI is forecast to come at 51.9 for October, slightly higher than September's 51.7. The final manufacturing PMI for the whole Euro zone is expected to be at 52, same as September's. Missing these forecasts will put yet more pressure on ECB to ease policy further in December, pushing Euro down.
From Britain, manufacturing PMI is forecast to come at 51.3, slightly lower than last month's 51.5. Coming at, or beating the forecast will help Sterling break crucial resistance lines in the coming days.
From U.S., ISM manufacturing PMI is forecast to be at a precarious 50 for October, barely growing. A reading above 50 indicates growth, while below 50 indicates contraction. The Fed hinted that it could still hike rates in December, so data released from now till then will be crucial for its decision, and the dollar's trajectory overall.