PMIs hold up, but still paint dire economic...>

FOREX: PMIs hold up, but still paint dire economic picture

- PMI data from across the Eurozone generally fared better-than-expected,

although the numbers still paint a picture of a contracting economy across the

month of May (just not contracting at as fast a pace as in April). The figures

have had (relatively) little impact on currencies so far, with the EUR mildly

stronger in early trading but still well short of outperforming.

- At the bottom end of the table, AUD and NZD are the poorest performers so far

Thursday as equities roll off the recent highs to pressure mainland European

markets lower by around 1%. This firms the 200-dma at $0.6662 in AUD/USD as key

resistance going forward, having previously contained prices in late January.

- The greenback is trading well after retreating for much of the Wednesday

session. DXY daily chart posted three consecutive declines into yesterday's

close, with the 100-dma possibly providing support from here at 98.930.

- Both the Turkish and South African rate decisions are due, with both central

banks seen trimming policy rates by 50bps apiece. US weekly jobless claims data

crosses at 1330BST/0830ET, with existing home sales and US PMI numbers also due.