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
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.