Closed in NY at $1.3046 after rate had recovered from extended pullback lows of $1.2993 to $1.3076. Rate drifted higher in early trade, getting an added lift to session highs of $1.3059 as risk appetite was given a boost on release of stronger than forecast NZ GDP data. Rate reversed off highs as Japanese traders sold Aussie-yen, a reduction in China coal imports was seen as the catalyst for Aussie sales, the flow prompting sales of euro-yen as traders turned attention toward stops sub Y102.10-00. The break below Y102.00 took euro-dollar through a stop level at $1.3020 before finding support at $1.2997. Bids to $1.2990 provided a cushion and allowed for a recovery back above $1.3000 ahead of the European open, though move seen shallow. HSBC China PMI came in better than expected, though failed to move back above 50.0. A weak mfg sub-index disappointed and added another dent to risk. Eurozone flash PMI’s due from 0658GMT provides the morning interest, as well as Spanish and French bond sales. Bids $1.2995/90, $1.2980 with stops below. Offers $1.3020/25 ahead of $1.3040.
EasyForexNews Research Team