With Asian markets returning to normality after the holidays (albeit with Japan still out), risk appetite has started strongly. Most risk currencies and Asian equity indices are trading higher this morning, buoyed in part by the strong Chinese non-manufacturing PMI released this morning. The survey increased to 56.0 in December, up from 49.7 in November – and follows an unexpectedly strong manufacturing PMI out of China on Sunday (50.3 compared to forecasts for 49.1).
The main beneficiaries in the currency space have been AUD and NZD which have both gained around 1%, although most of the majors are also higher versus the dollar today. Perhaps surprisingly, EURUSD has managed to rebound higher after yesterday’s session; in which Eurozone PMI surveys showed that manufacturing fell for a fifth straight month. The reading hit 46.9 in December, and any reading under 50.0 represents a contraction.
Today, the data release calendar picks up significantly with a number of manufacturing PMI surveys released; including those from Norway, Switzerland, the UK and US. In addition we expect to get the latest Riksbank minutes, German unemployment data for December and rounding out the US session will be the release of the FOMC minutes.
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