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23 Apr 2013
Forex Flash: USD/JPY interest grows as exchange stumbles – Investec
FXstreet.com (Barcelona) - Data released overnight indicated that China’s manufacturing sector is expanding at a slower pace this month, with exports showing a particularly large fall as part of a broad activity slowdown, adding weight to suggestions that the pace of growth in the world’s second largest economy is slowing.
The HSBC flash manufacturing PMI data came in at 50.5 for April, against expectations of a reading of 51.5 and last month’s reading of 51.6. The reaction to the data has been mixed, with Chinese equity markets falling by around 2% and commodities extending their recent weakness.
However, the closely linked Aussie Dollar has largely shrugged off the news weakening by just under 0.5%. The Chinese data also dented market hopes of a bounce back in USD/JPY to make another assault at the magical 100.00 level. “Considering the lack of data drivers today, aside from US new home sales, it may well need a good durable goods number from the US tomorrow to really test the level again. Either way, we expect the excitement to build once more if move back into the 99’s.” notes the Investec Research Team.
The HSBC flash manufacturing PMI data came in at 50.5 for April, against expectations of a reading of 51.5 and last month’s reading of 51.6. The reaction to the data has been mixed, with Chinese equity markets falling by around 2% and commodities extending their recent weakness.
However, the closely linked Aussie Dollar has largely shrugged off the news weakening by just under 0.5%. The Chinese data also dented market hopes of a bounce back in USD/JPY to make another assault at the magical 100.00 level. “Considering the lack of data drivers today, aside from US new home sales, it may well need a good durable goods number from the US tomorrow to really test the level again. Either way, we expect the excitement to build once more if move back into the 99’s.” notes the Investec Research Team.