Chinese PMI data shows a small rebound

A rebound in Chinese PMI data to a three-month high has given ‘Risk’ a much needed shot in the arm following yesterday’s gloomy Wall street session. The index rose to 49.1 from 47.9 with the new orders component coming in at a six-month high but the employment and inventories index declined.

The Australian CPI data jumped to 1.4% against a forecast of 0.9% which most had expected following the implementation of the carbon tax. The Australian treasurer said inflation is contained after the initial impact of carbon tax.

Focus today will be on European and US PMI data and German IFO during the European session and the FOMC statement at 7.15pm. The Committee will be content to sit back and observe how events are progressing while also making plans for a more important announcement at its December meeting. At most, policy makers may acknowledge the slight firming in the tone of the economic data.

EUR/USD

Supports 1.2940-1.2890-1.2835 | Resistance 1.3025-1.3080-1.3145

USD/JPY

Supports 79.65-79.40-79.00 | Resistance 80.05-80.55-80.85

GBP/USD

Supports 1.5910-1.5885-1.5790 | Resistance 1.6000-1.6045-1.6115

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