Asia Brief: China HSBC Manufacturing PMI 50.5 vs 50.0 expected.
Global Markets: Shanghai Comp up 0.60 %, Hang Seng unchanged, ASX gained 1.10 %. Nikkei closed. Gold at $1220 (+0.20 %), Silver at $17.74 (-0.20 %), Crude Oil at $91.26 (+0.40 %). US 10 year yield at 2.56.
FX Overview: There was a lot of AUD selling yesterday, probably in anticipation of bad Chinese data. The PMI print beat expectations however, which led to a short squeeze up to 0.8924 in the AUD/USD. Europe is likely to pick up some AUD as well and I'd expect the pair to stay well-bid in the next two sessions. The AUD rally will likely spark a bounce in NZD and CAD as well and put the USD slightly under pressure. USD/CAD almost hit 1.1050 overnight, but is now consolidating around 1.1020. Talk of good bids towards 1.0980, while offers are lined up in front of the 1.11 level.
USD/JPY dropped to 108.60 but the bids in the 108.50-60 area proved strong once again. Flows were rather light though as Tokyo was off for a holiday. The market is talking about larger stops sub-108.50, all the way down to 108.30 and they might attract soon. Meanwhile, EUR/USD has been able to bounce off the 1.2815 low and is trading around 1.2850 as we are heading into the European open. Plenty of PMI figures out of the Euro Zone countries today, so that might spark some volatility in the pair.
Looking ahead, we have several EZ PMI figures between 0700 and 0800 GMT and then Canadian Retail Sales at 1230 GMT.
Good luck!
Global Markets: Shanghai Comp up 0.60 %, Hang Seng unchanged, ASX gained 1.10 %. Nikkei closed. Gold at $1220 (+0.20 %), Silver at $17.74 (-0.20 %), Crude Oil at $91.26 (+0.40 %). US 10 year yield at 2.56.
FX Overview: There was a lot of AUD selling yesterday, probably in anticipation of bad Chinese data. The PMI print beat expectations however, which led to a short squeeze up to 0.8924 in the AUD/USD. Europe is likely to pick up some AUD as well and I'd expect the pair to stay well-bid in the next two sessions. The AUD rally will likely spark a bounce in NZD and CAD as well and put the USD slightly under pressure. USD/CAD almost hit 1.1050 overnight, but is now consolidating around 1.1020. Talk of good bids towards 1.0980, while offers are lined up in front of the 1.11 level.
USD/JPY dropped to 108.60 but the bids in the 108.50-60 area proved strong once again. Flows were rather light though as Tokyo was off for a holiday. The market is talking about larger stops sub-108.50, all the way down to 108.30 and they might attract soon. Meanwhile, EUR/USD has been able to bounce off the 1.2815 low and is trading around 1.2850 as we are heading into the European open. Plenty of PMI figures out of the Euro Zone countries today, so that might spark some volatility in the pair.
Looking ahead, we have several EZ PMI figures between 0700 and 0800 GMT and then Canadian Retail Sales at 1230 GMT.
Good luck!
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