China has the ability to maintain solid growth over the long run
City Index April 2, 2012 1:00 PM
<p>Chinese Vice Premier Li Keqiang has said that China has the ability to maintain solid growth over the long run, in a bid to boost […]</p>
Chinese Vice Premier Li Keqiang has said that China has the ability to maintain solid growth over the long run, in a bid to boost confidence in the world’s second-largest economy, which is facing a slowdown.
Euro-dollar closed in New York at 1.3335, with the rate marked up to 1.3358 into the Asian open as risk was given a general boost by the weekend release of surprisingly strong China PMI. The rate extended the react rally before stalling at Friday’s high of 1.3377 (Europe). The rate drifted lower through the balance of the overnight session, filling any technical gap left by the New York close/Asia open, with the rate marking lows at 1.3331 before settling between 1.3335-1.3345 into Europe. Bids seen placed at 1.3330, with a break to open a deeper move toward 1.3310-1.3300. Resistance remains at the 1.3377 level, with further sell interest said to get stronger from around 1.3385 and extending towards the much reported option barrier at 1.3400. Stops have been noted on a break of 1.3410.
Range: 1.5979 – 1.6040
Cable closed in New York at 1.6005, below its focus 200-week moving average at 1.6014, though the rate had traded to an intraday high of 1.6037 earlier in the session. The release of stronger than forecast Chinese PMI data on Sunday gave an early boost to risk into opening Asian trade, the rate getting lifted to 1.6030 before upside momentum faded with the rate drifting lower through the balance of the session to a low of 1.5979. The rate recovered to 1.5995 ahead of the European open, pressed back to retest overnight lows into the open. Sterling’s underlying positive tone remains in place despite closing below its 200-week moving average, the remaining at 1.6014 and will provide focus into this Friday’s close. Offers remain in place from 1.6030 and extend through Friday’s high at 1.6037 towards the barrier at 1.6050. Support at 1.5965 through to 1.5950, with stops below.
Range: 1,667.97 – 1,673.65
Gold is trading around 1,669.50 this morning, off earlier highs of 1,674.75 in early Asia following strong weekend release of Chinese manufacturing PMI data. The direction of gold over the last week or so has largely been dictated by currency moves since the calming of EU debt fears, but the 1,684-1,690 area which holds both the 100 and 200 DMA (at 1,684.10 and 1,689.60) continues to offers stout resistance ahead of the 1,700 level. Support towards 1,645 has recently contained any falls. The Indian government’s recent decision to impose import taxes on gold has led to a drop in physical demand from the world’s leading gold buyers, adding to the lack of upward momentum. Gold has support at Friday’s 1,659.80 low and 1,645.25, with resistance at 1,675.00 and the 100 day moving average at 1,684.10.
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