The European Union's better-than-expected Manufacturing PMI in January helped lift the euro against the greenback in today's European session. The number came out at 54.0, which was slightly higher than the expected number of 53.9. It was also higher than the previous month's figure at 52.7.
The EUR/USD pair thus received a temporary lift above the 1.3500 area. Over the weekend, the pair spent much of its time hovering around the 1.3490 zone. It so far peaked today at 1.3517. It is currently trading at 1.3493, with initial resistance seen at 1.3530, followed by 1.3564. Meanwhile, initial support is at 1.3436 followed by 1.3402.
Earlier today, the aussie rallied against the greenback as the market expects a less dovish Reserve Bank of Australia tomorrow when it announces its interest rate decision (4 Feb, 3:30AM, GMT). This is despite the increased concern about an economic slowdown in China.
The RBA is expected to maintain rates tomorrow at 2.5%. The AUD/USD pair climbed in today's trading above the 0.88 area, after spending the weekend between the 0.8740-0.8780 areas. It is currently trading at 0.8795, with initial resistance seen at 0.8788, followed by 0.8810. Meanwhile, initial support is at 0.8657, followed by 0.8635.
It was a down day for the USD/JPY pair today, as it dropped to a 2-month low at 101.66. However, it received a much-needed respite just ahead of the United States' ISM Manufacturing PMI for January later today (3:00PM, GMT) as it managed to return to the 102.00 zone. Other events in the US happening later include the Marikit Manufacturing PMI for January (1:58PM, GMT), Construction Spending for December 2013, and Total Vehicle Sales for January.
It is currently trading at 102.01, with initial resistance seen at 102.56, followed by 102.81. Meanwhile, initial support is at 101.55, followed by 101.30.
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