Chinese manufacturing sours risk sentiment

<p>Equities and FX risk trades are broadly lower this morning following disappointing Chinese HSBC manufacturing PMI data that signalled a contraction in the sector for […]</p>

Equities and FX risk trades are broadly lower this morning following disappointing Chinese HSBC manufacturing PMI data that signalled a contraction in the sector for the first time in six months.

The 50 level that signals expansion or contraction was broken, with a reading of 49.6 versus the consensus forecast of 50.3 as AUD reversed its gains made yesterday following stronger domestic inflation data trading initially back below 0.8800.

The Nikkei, like other equity markets, reversed its gains that saw the JPY strengthen following an initial high above 104.80.

CAD took a another leg lower in the Asian session, trading above 1.11 as Canadian Central Bank Governor Poloz added to a dovish statement yesterday that downgraded inflation forecasts. He stated in a Canadian TV interview that the door to a rate cut is ‘slightly more open’.

The data switches to Europe today with both the manufacturing and service sector PMI readings to be released this morning.

Consumer confidence data will be released from the EU area this afternoon along with existing home sales and the weekly jobless claims count from the US.

 

EUR/USD

Supports 1.3530-1.3500-1.3450 | Resistance 1.3630-1.3660-1.3700

 


USD/JPY

Supports 103.90-103.60-103.30 | Resistance 104.50-104.90-105.50

 



GBP/USD

Supports 1.6550-1.6520-1.6465 | Resistance 1.6605-1.6650-1.6710

 

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