Euro Dropped on Weaker PMI, Aussie Eased on CPI, Earnings Raise Risk Sentiment | IFCM UK
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Euro Dropped on Weaker PMI, Aussie Eased on CPI, Earnings Raise Risk Sentiment - 24.4.2013

The common currency against the US dollar fell on Tuesday from 1.3062 breaching support at 1.3016 to found support at 1.2971 following German flash Manufacturing PMI recorded at 47.9 for April, missing expectations at 49 and down compared with previous month PMI at 49, the Services PMI was also disappointing. Business activity for Euro-zone was also lower than expected as EZ Manufacturing PMI reported at 46.5 for April down from 46.8 the previous month. Later on Tuesday evening the currency pair returned back to 1.3020 as European equities close higher with FTSE 100 up by 2.00%, DAX rising by 2.41% and CAC 40 gaining 3.58% amid companies' better than estimated earning reports.


Earlier today, Australia’s Consumers Price Index annually displayed increase by 2.5% in the 1st quarter, less than expected 2.8% but higher than previous quarter through December. Reporting less increase in CPI than expectations provides room to RBA to further cut interest rates. Therefore increased speculation by traders of more aggressive policy weighed on the AUDUSD that fell from 1.0274 to 1.0238.


The US dollar index gained ground towards resistance at 83.07 as Apple reported EPS $10.09, $0.09 higher than estimates and revenue increase of 11.27%, AT&T reported EPS in line with expectations but slightly missed revenue. In general US companies reported firmly stronger than estimated earnings on Tuesday underpinning US equities to close in green with S&P advancing by 1.04%. The latter helped Asian equities to move to higher ground also reinforced by speculation of monetary easing, NIKKEI rose by 2.32%. The USDJPY surged from 98.48 to upside hurdle at 99.73 to enter in the intraday in 99.73/99.19 range, at the moment is trading at 99.59 staying close to peaks.
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