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Currency Analyst since 2010

Dec. 3: Asian session

US dollar is supported as American ISM manufacturing PMI for rose to the highest level since April 2011 bolstering expectations the Federal Reserve will soon trim its stimulus,. Investors also wait for ADP employment report due tomorrow: according to the forecasts, US companies added 170K positions last month, which would be the most in 5 months

EUR/USD is trading in the $1.3520/40 area. In euro zone watch for Spanish unemployment change due at 08:00 GMT (forecast 49.3K vs. previous 87.0K) and euro area’s PPI at 10:00 GMT. GBP/USD spiked to $1.6442 yesterday and is currently trading around $1.6365. Britain will release construction PMI at 09:30 GMT (forecast 59.3 vs. previous 59.4). Nothing can stop the JPY’s decline: on Tuesday USD/JPY extended the upside, facing resistance at 103.40. The Nikkei 225 index hit a 6-month high of 15.780 in the morning session. USD/CHF rose to the levels just below 0.9100.

AUD/USD kept weakening on Tuesday, retesting the $0.9055/65 support. Data showed China non-manufacturing PMI for November came at 56.0, down from 56.3 in October. In Australia, the RBA left interest rates unchanged at 2.50% along with forecasts, saying policy settings remain appropriate. In the meantime, Australia retail sales rose by 0.5% m/m in October (prior: 0.9%; forecast: 0.4%). Note that Australia will release its Q3 GDP on Wednesday. NZD/USD is trading a bit above the daily low of $0.8155. New Zealand finance minister English said today the NZ firms were anticipating interest rate rises in 2014. USD/CAD is trading on the upside, not far from yesterday’s high at 1.0654.

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