Currency Analyst since 2010

April 1: Asian session

Asian shares swung between gains and losses as investors weighed reports on China’s manufacturing that pointed to weakness in the world’s second-biggest economy. China March manufacturing PMI came a bit above the forecast at 50.3 (forecast: 50.1, previous: 50.2). However, the final manufacturing PMI from HSBC disappointed, falling the last week's estimate of 48.1 to 48.0 (February: 48.5).

USD/JPY is trading a bit on the upside in the 103.20/35 area, below yesterday’s high at 103.43. Yen remained lower after Bank of Japan’s data showed the Tankan index for sentiment among large manufacturers in the nation rose to 17 in Q1 from 16 in the previous period, while analysts surveyed by Bloomberg News expected an advance to 19. According to Mizuho, “Tankan was weak”.

AUD/USD retested the $0.9300 mark early in the session, but later slipped back into the $0.9260 area. RBA meeting was a pretty neutral event. The regulator repeated the Aussie dollar is high by historical standards, but said it sees a period of interest rate stability ahead. NZD/USD stayed in a small range around the $0.8670 mark.

EUR/USD edged up to $1.3778 after forming a spinning top candle yesterday. GBP/USD edged up to $1.6670, but is below yesterday’s high at $1.6684. US held losses versus most major peers as investors wondered weigh whether American economic data this week will be strong enough to lift central bank’s concerns that the economy still needs stimulus.

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