Forex: EUR/USD keeps lows around 1.3010/15

The shared currency is revisiting session lows on Tuesday around the area of 1.3010/15, as risk appetite continues to retreat on stronger US ISM Non Manufacturing PMI.

The euro pushed to the boundaries of 1.3080 earlier this morning, after better-than-expected services PMI in the euro zone members during February combined with a decent reading from the EMU’s retail sales. The upside run out of steam later, trimming those gains to the current area of 1.3010/15

The cross is now retreating 0.07% at 1.3016 and a breakdown of 1.2982 (low Mar.4) would expose 1.2966 (2013 low Mar.1) and finally.
On the flip side, resistance levels line up at 1.3101 (high Mar.1) ahead of 1.3108 (MA10d) and then 1.3114 (Ichimoku Cloud Base).

Mar 5, 2013

Euro hovers over 1.3000, but for how long?

The dollar trades firmer to little changed versus most competitors as early weakness was reversed at the beginning of the American session after better-than-expected US data. Despite positive sentiment among financial markets, the Euro and other currencies lacked momentum and failed to sustain gains versus the greenback.

Forex Flash: Shanghai Composite/AUD/USD correlation weakens? – UBS

According to Research Analyst Gareth Berry at UBS, “Moving away from positioning, even if we view the China risk as underpriced, the notion that major corrections in Chinese asset markets will lead to significant problems for the AUD also appear to be overblown.” It is well known that the Chinese equity market has never been the most accurate barometer for the Chinese economy (though this is changing for the better).