FOREX: Light Dollar Outperformance Noted, Kiwi Lagging

The Spanish manufacturing PMI has now been in expansionary territory since April. However, alongside the lower-than-expected reading, details of the November report were soft in places, with higher demand in part driven by discounting.

• MNI: SPAIN NOV MANUF PMI 51.5 (52.3 FCAST, 52.1 OCT)

Key notes from the release:

• “Panellists reported that demand was generally higher, but in part driven by discounting. This was highlighted by a drop in output charges for a third successive month and to the greatest degree since June”
• “Competitive pressures were noted, and firms typically cut their selling prices despite a marginal rise in input costs (which were underpinned by increased food, metals and energy prices).”
• “Demand growth in November was also primarily driven by the domestic market as new export orders declined for a third month in a row (albeit marginally)”
• “Firms were generally reluctant to replace leavers or renew expiring temporary contracts in November. Workforce numbers were little changed as a result overall”
• “Business confidence remained positive in November, with expected growth in the year ahead noted by most panellists.”

• RES 4: $60.852 - 1.382 proj of the Oct 28 - Nov 13 - 21 price swing 
• RES 3: $60.000 - Psychological round number
• RES 2: $59.563 - 1.236 proj of the Oct 28 - Nov 13 - 21 price swing
• RES 1: $57.864 - Intraday high   
• PRICE: $57.201 @ 08:18 GMT Dec 1
• SUP 1: $51.358 - 20-day EMA  
• SUP 2: $48.863/45.557 - 50-day EMA / Low Oct 28 
• SUP 3: $41.135 - Low Sep 17
• SUP 4: $38.087 - Low Aug 27  

Trend signals in Silver remain bullish - price has traded to a fresh all-time high today as it begins the week on a firm bullish note. This confirms a resumption of the uptrend and maintains the bullish price sequence of higher highs and higher lows. The move above $55.00 signals scope for a climb towards $59.563, a Fibonacci projection. On the downside, initial support lies at $51.358, the 20-day EMA. Support at the 50-day EMA lies at $48.863.

• MNI: SPAIN NOV MANUF PMI 51.5 (52.3 FCAST, 52.1 OCT)