- The services PMI was slightly down from February’s 53.9 but still a respectable number
- HK March PMI 52.0 from 52.8
- NY Fed survey of Primary dealers predicts steady policy through 2013
- Geithner: China slowdown good as it had been growing too fast
- Nikkei -1%; HK -1.25%; Shanghai +1% after 3-day holiday
- Gold $1625/oz; Oil $102.20/bbl
Pretty quiet session all round ahead of a long weekend in most financial centres. Some early risk-aversion in the form of AUD/JPY selling has now been undone after the reasonably good China services PMI data.
AUD/USD opened near 1.0270, fell to session lows just after the Tokyo open as they sold AUD/JPY ahead of the long weekend. These losses were quickly undone and the AUD rallied after the China data, even though it was slightly lower than last time, probably a sign of a short market? Real money demand has been the only flow of note. Ranges: 1.0250/1.0306
USD/JPY has been inching lower for much of the session with risk-aversion selling in the JPY crosses and also real money demand noted for the Yen. Ranges: 82.10/47
EUR/USD has again been led by the Asian currencies, trading a quiet range between 1.3134/58
Cable 1.5885/1.5908; EUR/CHF 1.2027/37
