Asian markets are set to open red today, dragged down by some soft economic conditions both in the US and Europe.

The main data point that weighed on US markets was ISM manufacturing, which came in with its fifth straight drop and was under the key 50.0 mark. There were a number of factors that are hurting the sector with the latest escalation in US-China tariffs, slower global growth, and a strong dollar all to blame. The SPX finished the session in the red down -0.69%.

In the UK, it looks like new PM has lost control already with speculation that a lack of direction will require England to head back to the polls. The GBP/USD ran into 3-year lows in a worrying sign for the country as little progress on Brexit appears possible at the moment.

GOLD is trading back up at highs of $1550, in a sign that risk-off is still clearly in play at the moment. BTC is also managing to hold above the key $10,000 level in what is a bullish sign for the time being.

Asian Market Outlook

Yesterday the AUD/USD was in focus on the back of the RBA and retail sales. The pair managed to jump higher in late trade and rallied strongly off the key support level at 0.6700 that I have been talking about.

However, the real test might well come today with GDP. IF we see a weak GDP print, that means the RBA will all but certainly cut rates to below 0.75%. At least, that is the belief of the broader market at the moment.

As such, there is a fair bit that could happen to the Aussie today and it will be the main focus post this number that is due at the normal time.

Support is strong clearly, but a weak print might bring the bears back out in force.