EUR/USD 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 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 held firm into early European trade, the markets here returning after the New Year
break. Several traders made note of the falling resistance line, drawn off the Oct 27 highs at $1.4248, which comes in around the $1.2990 level. A close above $1.3000 to be seen positive. Rate extended highs to $1.3008 in early Europe, only to drop to $1.2975 where it met semi official buying which provided a cushion. US investment house buys emerged to drive rate to a high of $1.3041, selling USD/CHF same time. Rate was holding firm ahead US return.
EasyForexNews Research Team