Asian Session – Yen gains after weak China PMI data
April 23, 2013 7:38 am
The yen gained on safe haven demand after disappointing manufacturing data from China indicated sluggishness in the recovery of the world’s second largest economy.
The HSBC China Purchasing Manager’s Index (PMI) weakened more than expected in April, falling to 50.5, compared with a final 51.6 reading for March. The number was below the 51.5 estimate but still above the 50-point demarcation point which separates growth from contraction.
The flash data raises concern over the Chinese economic recovery, which could stall for another quarter, after a big GDP miss in the first quarter.
The data sent the USDJPY below the key 99.00 level, reaching as low as 98.57 yen, reversing gains made on Monday when the pair headed towards the 100 yen level and hit the highest in four years.
EURJPY slid to 128.52 yen, falling from the open price of 129.62 yen, and down from Monday’s high of 130.65 yen.
Risk aversion affected the Australian dollar, which fell to $1.0220 against the US dollar, down from the session open of $1.0272.
The yen gained on safe haven demand after disappointing manufacturing data from China indicated sluggishness in the recovery of the world’s second largest economy.
The HSBC China Purchasing Manager’s Index (PMI) weakened more than expected in April, falling to 50.5, compared with a final 51.6 reading for March. The number was below the 51.5 estimate but still above the 50-point demarcation point which separates growth from contraction.
The flash data raises concern over the Chinese economic recovery, which could stall for another quarter, after a big GDP miss in the first quarter.
The data sent the USDJPY below the key 99.00 level, reaching as low as 98.57 yen, reversing gains made on Monday when the pair headed towards the 100 yen level and hit the highest in four years.
EURJPY slid to 128.52 yen, falling from the open price of 129.62 yen, and down from Monday’s high of 130.65 yen.
Risk aversion affected the Australian dollar, which fell to $1.0220 against the US dollar, down from the session open of $1.0272.
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