April 23: Asian session
Asian stocks erased gains after Chinese manufacturing data signaled persisting weakness in the world’s second-largest economy and Australia’s inflation rose less than expected.
USD/JPY is on the downside in the 102.70/50 area. The greenback remains near a 2-week high against the yen before US reports on manufacturing and new home sales that may add to signs the economy is improving.
AUD/USD fell to $0.9280. Australian CPI came out lower than expected (0.6% vs. 0.8% expected). In addition, a private report signaled that China’s manufacturing contracted for a fourth straight month – HSBC Flash Manufacturing PMI came at 48.3 which is once again below the threshold 50.0 level (forecast: 48.4; previous: 48.0). NZD/USD tested $0.8620, but then returned a bit below $0.8600.
EUR/USD rose to $1.3820 approaching yesterday’s high. GBP/USD is trading in the $1.6820/35 area.