- China HSBC flash PMI 49.4 from 49.9 last time
- NZ GDP lower than expected at +0.1% QoQ
- Some regional stockmarkets fall by over 4%
- Oil falls 2%; Gold $1779/oz
It’s been risk off again in Asia as the flow back towards the USD shows no sign of letting up. USD/Asia has again been well supported and the USD has made gains against all of the majors.
The NZD/USD was the first mover after worse than expected GDP data and it has been the biggest mover on the day, down 1.5%. This has also increased downward pressure on the AUD/USD but Sovereign and corporate bids near 1.00 have given it some support. Ranges: .9990/1.0077
EUR/USD has edged lower through the session but has been more of a follower rather than a leader. Stops were triggered below 1.3550 but momentum has been lacking. Ranges: 1.3530/1.3600
Cable has also been soft and will finish the session just above its lows after a 1.5450/1.5516 range
USD/CHF remains well supported by both USD bullishness and SNB intervention rumours whilst USD/JPY remains inside tight ranges, with the market expecting some intervention sooner rather than later.
