Chinese PMI data fails to break FX ranges
City Index March 1, 2013 3:30 PM
<p>The FX markets in Asia took a breather today following volatile moves that have seen USD/JPY move 400 points lower this week as we open […]</p>
The FX markets in Asia took a breather today following volatile moves that have seen USD/JPY move 400 points lower this week as we open this morning just below the half-way mark of that move of 92.80 at 92.50. Today is the first day of spring in the UK and also the last month of the Japanese financial year, which seasonally equates to overseas revenue taken back to Japan – equally a strong month for JPY.
China released its official manufacturing PMI data overnight which came in below consensus and that of the HSBC indication of 50.4 at 50.1, but the market has largely dismissed the reading, noting possible distortion from the extended Lunar new year celebrations.
In other news as widely expected, it was stalemate in the US Congress as the President’s $110 billion Bill to avert the sequester failed 51 to 49 in the senate with the Republicans also failing to get any legislation through in the House of Representatives. So the can is kicked further along the street in true European style.
The risk trade euro sit precariously just above the support levels of euro 1.3000, cable 1.50, AUD 1.0150 and the barometer being EUR/JPY at 119.00 but with the market already looking at next week’s central bank meetings and the US jobs report, today’s data of UK manufacturing PMI, EU unemployment , US PCE, Michigan sentiment and ISM data is unlikely to rock the boat although a disappointing Canadian GDP release could ignite further upside potential in the loonie and a break above 1.0350.
Supports 1.3035-1.3000-1.2875 | Resistance 1.3080-1.3135-1.3200
Supports 92.35-92.00-91.10 | Resistance 92.80-93.00-93.30
Supports 1.5100-1.5065-1.5000 | Resistance 1.5185-1.5230-1.5270
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