Risk slides on weaker HSBC Chinese manufacturing PMI
City Index April 23, 2013 1:48 PM
<p>The risk off theme has dominated FX markets overnight following weaker data from China. The HSBC China April PMI came in softer at 50.5 versus […]</p>
The risk off theme has dominated FX markets overnight following weaker data from China. The HSBC China April PMI came in softer at 50.5 versus an expected 51.5, signalling a slow expansion in the sector. The data sent equity markets lower, with the Shanghai composite off 2.5%.
Commodity currencies took the brunt of the poor data, with AUD continuing its decline following comments over the weekend from RBA’s Swan that the high AUD is hurting exports. The AUD made a fresh weekly low of 1.0221 following the release.
JPY continued its retreat from the elusive 100 level again, taking intraday stops out below 99.00 as EURO/JPY was crushed in the risk off sentiment.
Today is all about PMI data from Europe, with the market looking closely at the data to provide guidance on a possible ECB rate in coming months.
Supports 1.3000-1.2970 | Resistance 1.3100-1.3125-1.3200
Supports 98.30-97.90-97.30 | Resistance 99.40-100.00-100.90
Supports 1.5215-1.5125-1.5055 | Resistance 1.5325-1.5365-1.5420
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.