Risk appetite is given a strong boost in the first trading day of 2012 by a string of solid manufacturing data around the world. DOW opens strongly today and is up over 200pts within the first 30 minutes of trading. Sentiments are still firm after release of better than expected US ISM manufacturing index, which rose to 53.9 in December comparing to expectation of 53.2. Dollar is broadly lower on its inverse correctional with risk sentiments. Aussie and Kiwi continue to be the strongest currencies today with EUR/AUD extending decline to new record low. Dollar index failed to sustain above 80 psychological level again and the development continues to suggest short term topping and we’d likely see the index back towards 79 and below. UK manufacturing PMI rose from revised … Read entire article »

By: Barbara Zigah In Asian trading, the Euro traded higher against the safe haven U.S. Dollar and Japanese Yen, but briefly struck a new low against the Australian Dollar precipitated by some short covering and an underpinning of investors’ risk appetite. Worries over the Eurozone’s sovereign debt crisis continues to weigh heavily, and investors worry that a lack of clear-cut solutions to the years old crisis could push the common currency lower over the next few months, saved only by intermittent bouts of short-covering which offer some relief. As reported at 11:18 a.m. (JST) in Tokyo, the Euro was trading against the greenback at $1.2979, a gain of 0.3% but not far from the 2011 low struck of $1.2858 last week on the EBS trading platform. Against the Japanese Yen, the Euro … Read entire article »

Solid manufacturing data from China and Australia gives risk appetite a boost as the year 2012 starts. New Zealand dollar and Australian dollar gain most broadly while Aussie makes another record high against Euro. The official China Manufacturing PMI released over the weekend climbed back to expansion level of 50.3 in December. The dip to contraction region below 50, at 49 in November seemed to be brief so far and the manufacturing industry is steady ahead. Improvement across the components was also broadly based. Details suggested that the slowdown in domestic demand has stabilized with ‘new order’ gaining 0.9 points to 49.5 and ‘new export order’ rising to 49.4 from 47.1 in November. Meanwhile, the ‘overstock order’ gained modestly to 46.0 in … Read entire article »