The start of a new month and the PMI data is what will be in focus today. We started off with the China PMI which was weaker than expected, causing a risk off open for the Asian currencies. Yen is at a seven- year low as SUD keeps it moving higher.
The Aussie and Kiwi both drop on the back of weak China data, the AUD helped further down with very weak building approvals.
Today the Eurozone PMIs will be released with the same as last expected at 50.7 just above the expansion level but very close to it. With the EUR/USD currently trading below the 1.2500 handle this may keep pressure on the euro if does not hit the expected level.
The pound also comes out with its PMI today expected at 51.5 from 51.6 previous, a slight drop expected but still to stay above the 50 level. GBP/USD is currently trading below the 1.6000 handle, looking for some positives to gain back some ground over the ever strengthening USD.
Supports 1.2430 1.2385 1.2240 | Resistance 1.2500 1.2540 1.2585
Supports 112.40 112.20 111 | Resistance 113.00 113.35 114.00
Supports 112.40 112.20 111.60 | Resistance 1.6000 1.6040 1.6085
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