Aussie Plummets on Chinese Data, Asian Equities Higher on NFP and JPY GDP - 10.6.2013

The US dollar gained some ground before previous week close as the jobs data in USA indicated 175K news jobs were added in May excluding farming sector, more than expectations at 167K, although Unemployment Rate rose to 7.6% in May from 7.5% the previous month. The US index bounced up from support at 81.03 which is around 61.8% Fibonacci level of 78.88 to 84.46 at 81.85.

During the weekend Chinese data were mainly weaker than expected, with annualized CPI in May at 2.1%, unexpectedly lower and down from 2.4% the previous month, PPI dropped to – 2.9% from -2.6% the previous month, Fixed Asset Investment was at 20.4% in May lower than previous month at 20.6% and Industrial Production surprisingly down to 9.2% in May from 9.3% in April. Due to the latter Aussie against the US dollar started the week with a negative gap, falling sharply at the open around support at 0.9399, providing early gains to the short positions.

NIKKEI 225 surged by 4.51% on Monday session underpinned well by improved NFP and rising US equities on Friday as well as on stronger growth in Japan. Final Japanese GDP for Q1 was revised upward to 1% compared to 0.9% increase at a previous estimated, in addition Japan’s Current Account surplus increased from ¥0.34T in March to ¥0.85T in April. Thus the Yen weakened against the greenback with the USDJPY finding a strong support at 95.08 and then climbing to resistance at 98.43.