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
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