Feb. 20: Asian session
Asian stocks fell as private data that signaled weaker Chinese manufacturing. China’s HSBC flash manufacturing PMI fell in January from 49.5 to 48.3. MSCI Asia Pacific Index of shares dropped by 1.2%.
Risk aversion strengthened, so USD/JPY declined to 101.77, AUD/USD slid to $0.8940. NZD/USD is struggling in the $0.8270 area after 3 days of declines. Japanese trade deficit widened to a record last month. A report today that may show US inflation slowed, adding to concern the recovery in the world’s biggest economy is weakening
EUR/USD is trading on the upside, in the $1.3750 area, but below yesterday’s high at $1.3773. GBP/USD is holding above $1.6670 after the indecisive trading yesterday.