Forex: EUR/USD flat, AUD/USD plummets
FXstreet.com (Barcelona) - China PMI's have been making the rounds today, sending Aussie to fresh 5-week lows, while instead Euro is flat for the moment, last at 1.2575, with highs at 1.2588 and lows at 1.2555, so again another tight range for the Asia-Pacific session. EURAUD in the other hand is sky rocketing to fresh 2-month highs on Aussie weakness, last at 1.2259, with highs at 1.2270.
Bad data for Australia's interests
Much worse than expected Australia retail sales showing a decline of -0.8% for the month of July when an increase of +0.2% was expected, and previous one was revised up from +1% to +1.2%, made AUDUSD printing fresh 5-week lows at 1.0240, and thus making EURAUD touch session highs.
Starting with worse than expected Manufacturing PMI from China released on Saturday, which made AUDUSD open with a gap lower, made selling pressure on Aussie mount with retail sales later on, for then after also worse than previous Non-manufacturing PMI China, and lowest since March 2009 according to Bloomberg, the pair had a relief printing a higher low after the news, and bouncing slightly from there to recent 1.0262 AUDUSD.
A round trip day for equities around the region, starting selling off with SP500 futures leading the way down to session lows below the 1400 points losing some -0.5%, for then mostly all risky included gold and oil turning around, with Hang-Seng back to positive last up some +0.43%, Nikkei +0.13%, and even Shanghai rising +0.71%, coming from recent 3-year lows. European futures point for a flat to slightly lower open.
US on holiday and Draghi's speech on banking union
London session ahead will have another round of PMI figures this time coming from several EU countries like Spain, Italy, France, Germany, the EU, and Greece, starting at 07:13 GMT, 07:43, 07:48, 07:53, and finally at 07:58 with the EU and Greece respectively. Not much in EUR macro data related apart from the PMIs, with the focus on the US closed today on holiday, and ECB's Draghi to testify on banking union before the European Parliament's Economic and Monetary Affairs Committee, in Brussels at 13:30 GMT.
On the EZ sovereign debt auctions front only the Netherlands and France will try to sell short term maturities at 07:00 and 13:00 GMT, while Spanish 10y bond yields rose to 3-week high levels around the 6.9%, and its risk premium with Germany again above the 550 bps. Italian yields are steady right below the 6% in the 10 year bonds.
Euro and Aussie short term levels to watch
Immediate resistance to the upside for AUDUSD shows at Thursday/Friday lows around 1.0275, followed by session highs as John Noonan from IFR Markets says: "Sellers likely to reemerge around 1.0290/1.0300," and previous weekly closing price Friday at 1.0320. For the downside, nearest term support comes at recent session lows 1.0240, followed by key Fibo level/June 20 highs at 1.0224/15, and July 25 lows at 1.0175.
For EURUSD immediate support shows at recent session lows/Thursday highs 1.2560, followed by Aug 27 highs at 1.2535, and Wednesday's lows at 1.2520. For the upside, closest resistance comes at recent session highs 1.2590, followed by round 1.26, and Friday's highs at 1.2637.
Bad data for Australia's interests
Much worse than expected Australia retail sales showing a decline of -0.8% for the month of July when an increase of +0.2% was expected, and previous one was revised up from +1% to +1.2%, made AUDUSD printing fresh 5-week lows at 1.0240, and thus making EURAUD touch session highs.
Starting with worse than expected Manufacturing PMI from China released on Saturday, which made AUDUSD open with a gap lower, made selling pressure on Aussie mount with retail sales later on, for then after also worse than previous Non-manufacturing PMI China, and lowest since March 2009 according to Bloomberg, the pair had a relief printing a higher low after the news, and bouncing slightly from there to recent 1.0262 AUDUSD.
A round trip day for equities around the region, starting selling off with SP500 futures leading the way down to session lows below the 1400 points losing some -0.5%, for then mostly all risky included gold and oil turning around, with Hang-Seng back to positive last up some +0.43%, Nikkei +0.13%, and even Shanghai rising +0.71%, coming from recent 3-year lows. European futures point for a flat to slightly lower open.
US on holiday and Draghi's speech on banking union
London session ahead will have another round of PMI figures this time coming from several EU countries like Spain, Italy, France, Germany, the EU, and Greece, starting at 07:13 GMT, 07:43, 07:48, 07:53, and finally at 07:58 with the EU and Greece respectively. Not much in EUR macro data related apart from the PMIs, with the focus on the US closed today on holiday, and ECB's Draghi to testify on banking union before the European Parliament's Economic and Monetary Affairs Committee, in Brussels at 13:30 GMT.
On the EZ sovereign debt auctions front only the Netherlands and France will try to sell short term maturities at 07:00 and 13:00 GMT, while Spanish 10y bond yields rose to 3-week high levels around the 6.9%, and its risk premium with Germany again above the 550 bps. Italian yields are steady right below the 6% in the 10 year bonds.
Euro and Aussie short term levels to watch
Immediate resistance to the upside for AUDUSD shows at Thursday/Friday lows around 1.0275, followed by session highs as John Noonan from IFR Markets says: "Sellers likely to reemerge around 1.0290/1.0300," and previous weekly closing price Friday at 1.0320. For the downside, nearest term support comes at recent session lows 1.0240, followed by key Fibo level/June 20 highs at 1.0224/15, and July 25 lows at 1.0175.
For EURUSD immediate support shows at recent session lows/Thursday highs 1.2560, followed by Aug 27 highs at 1.2535, and Wednesday's lows at 1.2520. For the upside, closest resistance comes at recent session highs 1.2590, followed by round 1.26, and Friday's highs at 1.2637.
Free Annual Reports
