Commodities dip on China output slowdown

March 22, 2012 - PRLog -- This morning, once again its commodities and commodity related currencies that are at the forefront of early movements. HSBC Flash manufacturing PMI data for China this implied a contraction in output. This is bad news for commodities and commodity producing currencies.

The Australian and New Zealand dollars are leading the early fallers. The AUD/JPY is down 0.67%, the AUD/USD down 0.46% with the NZD/USD off by 0.35%. The euro appears to be on a different trajectory however, with the EUR/USD recovering well from the previous days lows.

Coming up today, we have a series of European manufacturing and services data points starting with French data at 08.00, German at 08.30 and Europe wide at 09.00. UK retail sales are released at 09.30 with a drop in sales expected. Canadian retail sales are released at 12.30.  US unemployment claims follow at 12.30 with no real significant change expected. At 16.00 ECB president Draghi speaks at a press conference for the European Systemic Risk Board. US Fed chairman Bernanke speaks at 16.45.

In late 2011, the NZD/USD was a highly strong trend following pair, but 2012 has been a different story since January. This week however, we have the makings of a strong trend and if the support levels around 80.50 give way, there could be some more downside to come. A good way to play this on BetOnMarkets.com might be a LOWER trade predicting that the NZD/ USD closes below 0.8050 in 5 days time for a potential return of 133%.

Get this trade now

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Name: Mike Wright

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