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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Chinese PMI data fails to break FX ranges

Article By: ,  Financial Analyst
March 1, 2013 10:30 AM

The FX markets in Asia took a breather today following volatile moves that have  seen USD/JPY move 400 points lower this week as we open this morning just below the half-way mark of that move of 92.80 at 92.50. Today is the first day of spring in the UK and also the last month of the Japanese financial year, which seasonally equates to overseas revenue taken back to Japan – equally a strong month for JPY.

China released its official manufacturing PMI data overnight which came in below consensus and that of the HSBC indication of 50.4 at 50.1, but the market has largely dismissed the reading, noting possible distortion from the extended Lunar new year celebrations.

In other news as widely expected, it was stalemate in the US Congress as the President’s $110 billion Bill to avert the sequester failed 51 to 49 in the senate with the Republicans also failing to get any legislation through in the House of Representatives. So the can is kicked further along the street in true European style.

The risk trade euro sit precariously just above the support levels of euro 1.3000, cable 1.50, AUD 1.0150 and the barometer being EUR/JPY at 119.00 but with the market already looking at next week’s central bank meetings and the US jobs report, today’s data of UK manufacturing PMI, EU unemployment , US PCE, Michigan sentiment and ISM data is unlikely to rock the boat although a disappointing Canadian GDP release could ignite further upside potential in the loonie and a break above 1.0350.

 


EUR/USD

Supports 1.3035-1.3000-1.2875 | Resistance 1.3080-1.3135-1.3200


USD/JPY

Supports 92.35-92.00-91.10 | Resistance 92.80-93.00-93.30


GBP/USD

Supports  1.5100-1.5065-1.5000 | Resistance 1.5185-1.5230-1.5270

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