Fri, Oct 07, 2022 @ 06:43 GMT
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European update: Euro pressured by weak PMI, Aussie and Kiwi tumble as Chinese stocks dive

Euro, New Zealand and Australian Dollars are the weakest ones for today so far, for different reasons. Euro is clearly weighed down by weak PMI data. Eurozone PMI composite dropped to 47-month low of 52.4. Markit also suggested that the weakness in Q3 may not be a just a blip. And, risks to growth outlook have beome increasingly skewed to the downside. EUR/USD’s break of 1.1358 minor support would bring send the pair back to 1.1215 low next.

Aussie and Kiwi are, on the other hand, pressured by selloff in Chinese stocks. The China Shanghai SSE dropped -2.49% to 2579.48. Looking at the SSE daily chart, the rejection from 55 day EMA and medium term falling channel resistance could now set the stage for a retest on 2449.19 low at least.

Staying in the currency markets, for now, Yen and Dollar are the strongest ones.

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