Strong Chinese data puts pressure on USD; will US home sales and trade balance data disappoint?
City Index October 24, 2013 2:13 PM
<p>USD started the day weak after Chinese PMI data came out slightly better than expected to a seven-month high in October and still above the […]</p>
USD started the day weak after Chinese PMI data came out slightly better than expected to a seven-month high in October and still above the 50 level, causing the USD to weaken and risk trades to gain momentum after yesterday’s weakness.
The Aussie has stayed higher today on the back of the data out of China but some comments from RBA’s Lowe could persuade traders, who are otherwise saying that a further fall would assist economic balancing.
Today we see the French and German PMI and EU Flash Manufacturing PMI. All are expected to be over the 50 level. So far the French figures have come in weaker than expected and below the 50 level of growth and the German PMI has come in as expected – still over the 50 mark. There’s been a sell off in EUR/USD after the releases so far.
In the US there is the Trade Balance and New Home Sales data, which will help guide the market on whether there will be taper or no taper in the coming months.
In the UK there are no data releases scheduled today but we will hear from BoE Governor Mark Carney later this evening. Nothing much is expected but it’s always worth a listen in case of any future developments.
Supports 1.3760 1.3660 1.3515 | Resistance 1.3800 1.3830 1.3870
Supports 0.9630 0.9600 0.9525 | Resistance 0.9755 0.9792 0.9840
Supports 1.6115 1.5940 1.5890 | Resistance 1.6250 1.6300 1.6380
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