- HSBC flash PMI rises to 51.1 from 49.9
- Rio Tinto gives bullish outlook for Chinese industrial production
- PBOC fixes USD/CNY at 6.3549 compared with a close last Friday near 6.3850
- Australian PPI +2.7% YoY (+2.9% expected)
- European leaders claim progress but no deal clinched yet
- Asian stockmarkets rise by 2.5% on average
- Gold +0.5% to $1645/oz
AUD/USD has again been the main mover in Asia, with strong performances on regional bourses improving risk sentiment. The AUD/USD edged lower in early trade as traders preferred to sell ahead of technical resistance at 1.0375 as well as on the EFSF delays. Solid PMI data out of China kicked the Aussie up out of its session range, triggering stops above 1.0400 in the process. The low fix in USD/CNY also helped soften bullish USD sentiment. Range: 1.0311/1.0417
EUR/USD opened lower this morning after closing in NY on Friday at 1.3880. The lack of progress at the latest European meeting was the cause but with mainly positive vibes coming from meeting participants, shorts soon covered. Improved risk sentiment also encouraged EUR short covering. Ranges: 1.3827/1.3907
USD/JPY had a fairly typical 30 pip range, with some early buying in case of BOJ activity gave way to sideways drifts. Ranges: 76.13/46
USD/CHF .8820/53; Cable 1.5928/82
