| Currency <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> | Daily Percentage Change (%) | Intraday High | Intraday Low | Day's Range (pips) |
| AUDUSD | -0.6% | 0.7530 | 0.7441 | 89 |
| GBPUSD | -0.4% | 1.8725 | 1.8565 | 160 |
NZDUSD | -0.4% | 0.6353 | 0.6291 | 62 |
AUDUSD<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Manufacturing <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Sparks Aussie Pessimism
Bearish momentum continued to hamper upside potential for the high yielding currency as manufacturing data sparked further selling in the North American session. According to the Australian Industry Group-Pricewaterhouse Coopers performance of manufacturing index, activity dipped 1.4 points to a 48.9 reading in the month of May. Below the 50 expansionary figure, the recent reading has quelled any optimism that was sparked by the higher than expected retail sales figure seen earlier. As a result, further tightening looks unnecessary and continues to weigh on the Aussie. Metal price pullbacks in the early morning additionally contributed as gold declined by almost $20 on the day with additional pessimism in base metals such as silver and copper.
Rumormill
CTA and heavier funds look to continue shorting the major pair into the Asian session, following the momentum established throughout. As a result, offers continue to run heavy at the 0.7475 and 0.7500 figures, while buyers are surrounding the 0.7441 session bottom.
GBP/USD
Sterling DataFalls Again
Bullish dollar momentum kept the sterling major out of positive territory for most of the session with a weak manufacturing figure lending to overall pound bearishness. Even as export orders rose to a two and a half year high, the manufacturing sector moderated slightly to the dismay of the consensus. According to the Chartered Institute of Purchasing and Supply, the survey slipped to 53.2 in the month of May. Although signaling continued expansion with an above 50 figure, the result was less than the April figure of 54.1. Subsequent focus looked to be focused on tomorrows US unemployment data as US manufacturing lent to some near term pound bids. With next weeks Bank of England decision around the corner, sentiment is rising of stay on benchmark rates, contrary to earlier speculation of a rise or two.
Rumormill
With traders on the sidelines heading into the Asian, and ultimately the overnight London session, offers continue to come in at 1.8700 and 1.8730. Bids only look to prop the spot above the 1.8650 figure.
Manufacturing Keeps NZD Weighed
Kiwi remained under pressure in light of a declining manufacturing survey in the US. According to the most recent figures, US manufacturing ISM dropped to a reading of 54.4 from a 56 expected by the consensus. Coupled with ECB comments of global imbalances weighing on greenback positions, ideally Kiwi dollars should have remained bid. However, falling on heavy offers at 0.6325 and news overnight of a manufacturers associations survey that showed activity had dropped 10 percent in the month March, the Kiwi remained under water even after the close. Other reflections can be seen in the cross selling of NZDJPY, with most traders continuing to be sidelined before the imminent US non-farm payrolls set for tomorrow.
Rumormill
Offers remain heavily, square on the 0.6325 figure with any remnants of buying interest resting at 0.6290.
