Asian Session – USDJPY falls after China data shows slow growth
April 1, 2013 7:56 am
Market sentiment was heavy during Monday’s Asian session after weaker-than-expected manufacturing PMI data from China, the world’s second largest economy. An official gauge of China’s factory output expanded at a slower-than-forecast pace of 50.9 versus 51.6 expected.
The yen weakened briefly after slightly worse-than-expected data from Japan’s closely watched Tankan index. This is a quarterly survey of sentiment among the country’s largest manufacturers, which printed a reading of minus 8 versus the expected minus 7. The index printed in negative territory for a third consecutive period.
USDJPY opened in Asia at 94.26, made a brief jump to 94.36 after the Tankan numbers, then eventually fell to a session low of 93.77 yen after the disappointing China data. EURJPY opened at 120.68 and fell to 119.92 yen. The yen usually gains on safe haven demand when market sentiment is risk off.
The Bank of Japan policy meeting later this week will be in focus as markets will closely watch the central bank’s new governor Kuroda’ decision on whether to adopt more aggressive monetary easing measures he had pledged he would.
Euro headed lower after opening at $1.2804, touching at low of $1.2770 before steadying to $1.2790. The European Session is expected to be quiet, with no key economic data release today since major markets there are closed for the Easter holidays.
Investors will look for market direction from US data, with Markit’s US final manufacturing PMI for March and the Institute for Supply Management’s March manufacturing index due later in the US session.
Market sentiment was heavy during Monday’s Asian session after weaker-than-expected manufacturing PMI data from China, the world’s second largest economy. An official gauge of China’s factory output expanded at a slower-than-forecast pace of 50.9 versus 51.6 expected.
The yen weakened briefly after slightly worse-than-expected data from Japan’s closely watched Tankan index. This is a quarterly survey of sentiment among the country’s largest manufacturers, which printed a reading of minus 8 versus the expected minus 7. The index printed in negative territory for a third consecutive period.
USDJPY opened in Asia at 94.26, made a brief jump to 94.36 after the Tankan numbers, then eventually fell to a session low of 93.77 yen after the disappointing China data. EURJPY opened at 120.68 and fell to 119.92 yen. The yen usually gains on safe haven demand when market sentiment is risk off.
The Bank of Japan policy meeting later this week will be in focus as markets will closely watch the central bank’s new governor Kuroda’ decision on whether to adopt more aggressive monetary easing measures he had pledged he would.
Euro headed lower after opening at $1.2804, touching at low of $1.2770 before steadying to $1.2790. The European Session is expected to be quiet, with no key economic data release today since major markets there are closed for the Easter holidays.
Investors will look for market direction from US data, with Markit’s US final manufacturing PMI for March and the Institute for Supply Management’s March manufacturing index due later in the US session.
Related Posts: