- China’s official PMI recovered in December to 50.3 from 49.0 the previous month
- Indian PMI rose strongly to 54.0, the highest level in 6 months
- Australian PMI edges back above 50, showing slight expansion
- Singaporean GDP -4.9% QoQ
- Merkel and Sarkozy still talking positively on EUR future
- Silver rises 2%; Gold +0.7% to $1580/oz
- Nikkei closed; other regional equity markets +1.5% on average
There has been a moderate risk rally today in Asia with the AUD/USD rising 60 pips on the back of strong PMI data out of China and India over the weekend. Precious metals opened higher, with Silver rising 2%, and equity markets also rose.
EUR/USD has moved slowly higher through the session, without ever gaining any significant momentum. Friday’s NY high at 1.2999 remained untested. Dealers report little or no interest in the EUR during today’s trade and the Tokyo holiday didn’t help. Range: 1.2930/88
AUD/USD has been the main mover again, with improved risk appetite, stop-loss buy orders and hedge fund buying all adding to momentum. Some stops were triggered above 1.0275/80 and at one stage, a sharp flow moved the market higher from 1.0265 to 1.0290. Most of the afternoon has been quiet consolidation. Ranges: 1.0226/96
USD/JPY traded quietly in a 76.81/96 range. Cable saw 1.5504/36 and USD/CHF .9373/99.
