Global Markets:

  • China HSBC Manu PMI 49.7 vs 48.1 expected
  • Asian equity markets are higher; Nikkei gained 2.10 % and the ASX rallied 1 %

FX Flows/Orders:

EUR – Large bids ahead of the 200 daily moving average at 1.3635 held and banks report high turnover. Offers are noted at 1.3710 and large pre-1.3750.

JPY – Stops were cleared above 101.50 and the pair is trading near the session high as we head into the EU open. Japanese exporters have offers placed ahead 102.00, but specs seem keen to buy dips. Intraday support at 101.30 and 101.05.

AUD – Model funds were sellers in the early session, but many short-term specs got squeezed after solid Chinese econ data. Offers at 0.9320 in good size, but bids building at 0.9220/25. Cross flows have been supportive with decent AUDJPY buying.

Upcoming Events:

  • 0700 GMT – French Manufacturing & Services PMI
  • 0730 GMT – German Manufacturing & Services PMI
  • 0800 GMT – Euro Zone Manufacturing & Services PMI
  • 0830 GMT – UK GDP
  • 1230 GMT – Canadian Retail Sales
  • 1230 GMT – US Initial Jobless Claims