Asian Session Recap – March 24, 2014

  • China HSBC manufacturing PMI at 48.1 vs. 48.7 expected and 48.5 previous
  • PBoC sets yuan reference rate at 6.1452 vs. 6.1475 previous
  • Nikkei closes up by 1.77%

The investors started the week on a positive note despite a miss in China’s manufacturing PMI numbers. The index reading dropped from 48.5 to an eight-month low reading of 48.1 in March as China’s growth momentum continues to slow down.

The report didn’t rock the markets much though, thanks to rumors of China unleashing stimulus in reaction to the report’s weakness. AUD/USD and NZD/USD had sustained 50-pip losses early in the day before they trekked back to their open price areas.

The yen turned out to be the biggest loser of the trading session as investors reacted to the lack of major reports by hunting bargains. While European currency pairs like EUR/USD and GBP/USD remained in tight ranges, yen pairs like USD/JPY, EUR/JPY, GBP/JPY, and AUD/JPY have risen by at least 50 pips since the day started.

We have more PMIs on schedule for today so don’t walk away from your trades just yet! From 8:00 – 9:00 am GMT we’ll see manufacturing and services PMIs from Germany, France, and the euro region. While these reports don’t usually influence price action for long, they can affect the general direction of the euro if they all print to the upside or downside.

See also:

U.S. Session Recap

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