UK PMI data revealed the slowest rise in business activity since global recovery. Europe’s PMI data come in mixed ahead of busy week. NZD shaded off some gains ahead of central bank`s rate decision on Wednesday. A negative mood is seen across stocks board.
NZDJPY slid below 0.8200, losing -1.17% post BoJ core CPI at 1.4% against 1.1% forecasted. The NZD has retraced after a 3day rally against the Yen ahead of the RBNZ rate decision on Wednesday. The central bank is expected to price in a 50bps hike to curb inflation. The pair took out last week`s high at 82.49 and established a new high at 82.78. A break above that may facilitate a recapture of 83.72 and 84.00 in the near-term. To the downside a break of 81.27 lows may send the pair to 80.21 79.27.
EURGBP rose +0.91% following Lagarde`s comment on moving rates to positive territory by end of Q3. German Manufacturing PMI data came at a positive 54.7 while the services PMI was less by 0.9 from expectations. Despite the disappointing Euro PMI data, the GBP continues to sink following negative PMI data as well. GBP composite PMI was at 51.8 vs 56.5, manufacturing PMI AT 54.6 vs 54.9 and services PMI at 51.8 vs 56.9. The pair is currently trading above 0.8500 mark with 0.8600 in focus. More to lookout for is ECB`s Lagarde and BoE MPC member Tenreyro speeches in New York session.
USDCHF is moving sideways between 0.9670 resistance and 0.9610 support losing -0.03%. The bears are headed for a test at 0.9600 ahead of Fed Powell`s speech along with PMI data release and new home sales data. If bulls take over, the 0.96960 resistance may be challenge to the upside.
European stocks opened on the back foot losing Monday`s gains. CAC 40 lost -1.40% dropping lower than 6258, yesterday’s support. A move lower may give in to 6100 and 6019 while a move higher may cover up to 6760. DAX is trading below 14100 level and has trimmed gains by -1.27%. The index is faced with a weekly support at 13691 and a resistance at 14231. FTSE 100 is trading under the 7500 mark with lows at 7389 and 7300.
Negative mood in the European stocks mirrored on US stocks as well. S&P 500 futures plunged by -1.65% and a breach of 3900, yesterday`s support, may give a retest of 3811, last week`s support. Nasdaq shaded off gains by -2.17% with 12059 as resistance and 11496 as an immediate support. Dow Jones plunged by -1.08% and has a support at 31338.58 in focus.
BTCUSD is up by +0.75% as bitcoin is taking advantage of Dollar weakness. The cryptocurrency may retake 30 000 if BTC bulls gears up. A more bullish run may take the cryptocurrency out of the current consolidation between 31426 and 28617. Intraday support is at 29 036 and resistance at 29 400.
