Opened Asia at $1.2935, marking early lows at $1.2933 before progressing higher. The move up was aided by Chinese data, stronger than expected manufacturing PMI released Sunday then supported by strong non-manufacturing PMI data, provided for risk appetite, with Australian AIG manufacturing index also proving strong as it moved back above 50.0. AUD provided the lead, with EUR/USD able to edge to an eventual high of $1.2990. Rate holds firm into early European trade, the markets here returning after the New Year break, with rate able to extend highs to $1.2993, currently around $1.2984. Several traders make note of the falling resistance line drawn off the Oct 27 highs at $1.4248 which comes in around the $1.2990 level, one adding that a close above the $1.3000 level would be seen positive. Offers are reported to $1.3000, a break to open a move toward $1.3020 ahead of $1.3040/50. Although the USD looks open to a corrective pullback, from recent recovery gains, market will remain wary of further Eurozone concerns to take EUR/USD too much higher. Support $1.2935/30 ahead of $1.2910/00.
EasyForexNews Research Team