USD Slides Ahead of ISM Data

Even though some analysts bet that eurozone will start disintegrating this year and will almost certainly collapse within the next decade, EUR/USD is climbing today and trying to pass 1.3000 barrier. Signs showing that manufacturing is expanding in the world’s two largest economies boosted investors’ optimism about the global economy. The forex market participants’ focus will be on ISM manufacturing data today.
Currency strategist at Westpac Banking Corp., Jonathan Cavenagh said “If the world economy, in particular the key Asian economies, can avoid a really sharp slowdown in growth, some of the currencies that are more sensitive to that global story are probably going to hold up fairly well. The risk is obviously that you start to see the U.S. dollar come under a little bit of pressure”.
Today the Asian stock markets opened higher as manufacturing growth from several countries such as Australia, China and India added optimism to market sentiment; investors think that the region’s economies will withstand eurozone’s unresolved debt crisis. The Tokyo Stock Exchange is closed today. HANG SENG opened at 18,795.34, previous close was 18,434.39. Australia’s S&P/ASX 200 index rose 1.16%. chief investment officer at Samsung Asset Management, Pauline Dan said “Positive economic data provide a catalyst for a small new year rally. We will probably see more headwinds from Europe as large amounts of debt from countries such as Italy are due for refinancing”.
EUR/USD is trading at 1.2979 by the time of typing and for today resistances are located at 1.3012 and 1.3071. Support levels are 1.2938 and 1.2887.
GBP/USD is at 1.5532. Resistance levels are located at 1.5580 and 1.5643. Supports are located at 1.5505 and 1.5430.
USD/CHF is trading at 0.9385 by the time of typing and for today resistances are located at 0.9433 and 0.9459. Support levels are 0.9368 and 0.9323.
AUD/USD is trading at 1.0284. Resistances are located at 1.0300 and 1.0376. Support levels are 1.0261 and 1.0202.
The economic calendar is light today but there are a couple of important data releases which can cause high impact on the forex market. Australian Commodity Prices report will be released at 05:30 GMT. Swiss SVME Purchasing Managers’ Index data will be released at 08:30 GMT. German Unemployment figures will be released at 08:55 GMT. U.K. Manufacturing PMI data will be released at 09:30 GMT. U.S. ISM Manufacturing PMI and Construction Spending reports will be released at 15:00 GMT.