ASIA session review (03.07.2013): Dollar retreated

Data released (actual, consensus, previous):            

01:00 GMT Australia New Home Sales (m/m) (May )     1.6         3.9          

01:00 GMT China Non-manufacturing PMI Markit (Jun)     53.9         54.3 

01:30 GMT Australia Retail Sales (m/m) ((May)     0.1     0.3     -0.1          

01:30 GMT Australia Trade Balance (m/m) (May)     670000000         171000000 

01:45 GMT China  HSBC China Services PMI (Jun)     51.3 

07:53 GMT Germany Markit Services PMI (Jun)     50.4     51.3     49.7 

07:58 GMT EU Markit Services PMI (Jun)     48.3     48.6     47.2 

08:28 GMT UK Markit Services PMI (Jun)     56.9     54.5     54.9 

09:00 GMT EU Retail Sales (m/m) (May)     1     -2     -1.1

The dollar retreated versus european currencies after stronger then expected Services PM data were published. 

Meantime investors worry about China economy conditions. Adding to signs of a slowdown, China’s non-manufacturing purchasing manager’s index fell to 53.9 in June from 54.3 in May, according to data released by the Beijing-based National Bureau of Statistics and Federation of Logistics & Purchasing. 

The conditions exist for China to realize its economic targets for this year and for sustainable, healthy development, Premier Li said in a meeting with leaders from central and eastern Europe, according to a China Central Television report yesterday. 

The comments come after Goldman Sachs Group Inc., China International Capital Corp., Barclays Plc and HSBC Holdings Plc pared their growth projections this year to 7.4%, below the government’s 7.5% goal.

EURO:

Euro rose after good macroeconomy data. Markit Services PMI in June rose to 48.3, comparing to 47.2 in Mayе. However uncertainty with Greece still makes some pressure on euro. 

EUR/USD tested support at $1.2920. Next strong support is near $1.2820. Initioal resistance is at $1.3020. Breaking of this level will return optimism for euro buying.

POUND:

Data released showed Markit Services PMI increased to 56.9 points in June, from 54.9 points in May. The result is better market consensus of 54.5 points. 

Moreover, BoE said about improving of credit conditions in Q2. Demand rises across the board corp credit available +14.2% vs 12.3% prev corp credit available next 3 months +3.5% vs +3.1% prev.

GBP/USD found support at $1.5120. Below losses may widen to $1.5100. Initial resistance comes at Friday’s high on $1.5280, then - at $1.5340 (Thursday’s high), then - at $1.5400 (Wednesday’s high), then - at $1.5450/60 and $1.5530 (Jun 21 high).

YEN:

The yen rose versus dollar also. 

USD/JPY has eroded the 99.89/100.00 resistance zone, made up of the April highs, 61.8% Fibonacci retracement of the May-to-June decline and psychological resistance. The top of the cloud offers additional resistance at 101.28.

DATA AHEAD:

At 14:00 GMT US Jun ISM Non-Manufacturing PMI is schedule to release with 54.3 expected after 53.7. 

At 14:30 GMT EIA Crude Oil Stocks change come for the Jun 28 week.

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