Similar to France, the composite output index was at a multimonth high of 50.5 (48.8 expected, 47.7 prior, 10-month high for Germany), driven by an increase in demand for services (with the services PMI at 53.3, also a 10-month high). However, manufacturing also saw a small disappointment, rising to 42.2 from 41.9 (42.7 expected) with the " the sharpest drop in factory new orders for five months." However, on the prices side the picture doesn't appear as concerning as in France with services prices merely rising at their series long-run average. Highlights from the press release
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USDCAD is trading higher but for now, remains below its recent highs. Key short-term resistance has been defined at 1.3614, the Mar 19 high. A break of this level would confirm a resumption of the uptrend that began on Dec 27. This would expose 1.3623, a Fibonacci retracement, and 1.3661, the Nov 27 high. Key support has been defined at 1.3420, the Mar 8 low. A break would be bearish.
AUDUSD has reversed lower in line with a recovery in the USD. The move lower reinstates a bearish threat and attention is on support at 0.6478, the Mar 5 low. A break of this level would expose the key support and bear trigger at 0.6443, the Feb 13 low. Moving average studies continue to highlight a short-term downtrend. Initial resistance is at Thursday’s 0.6635 high.
The EURJPY uptrend remains intact following this week’s move higher and the latest pullback is considered corrective. The cross has traded through 164.30, the Nov 16 ‘23 high and the medium-term bull trigger. This confirms a resumption of the long-term uptrend. The break higher opens 165.67, the top of a MA envelope, and the 166.00 handle further out. Initial firm support lies at 162.60, the 20-day EMA.