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Chinese PMIs Provide Highlights Of Quiet Asia-Pac Session

FOREX

The yuan faced some temporary headwinds as China's official PMI readings missed forecasts, but it regained poise ahead of the release of Caixin M'fing PMI, which topped expectations. USD/CNH tested yesterday's low in afternoon trade after a fresh round of sales. The PBOC set its central USD/CNY mid-point at CNY6.4672, 7 pips above sell-side estimates, with little in the way of market reaction seen after the fix.

  • G10 crosses were happy to hug familiar ranges, with AUD outperforming at the margin. SEK lagged all of its peers from the basket, after bringing up the rear on Thursday.
  • JPY ignored the local data deluge, despite a solid beat in flash industrial output. USD/JPY slipped over the Tokyo fix, as Gotobi Day flows failed to dictate price action, but the pair recouped most losses thereafter.
  • Focus turns to GDP reports from Canada, Germany, Italy, France & EZ as well as U.S., PCE data & MNI Chicago PMI. Fed's Kaplan is due to speak.

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