Manufacturing Activity In China Is Growing - 24.1.2013

The HSBC preliminary index for January, reflecting manufacturing activity in China, rose to 2-years high, exceeding market expectations. The index reached 51.9 (previous: 51.5) against the growth forecast to 51.7. Such strong data could provide some support for risk-sensitive currencies. Australian dollar keeps trading above 01.05 vs. the U.S. dollar. The Japanese yen fell against the dollar and euro this morning. The foreign trade data for December were published in Japan today, according to these the trade deficit last month totaled 641.5 billion yen. This is less than it was in November, but a little worse than it was expected. It should also be noted that exports of goods fell by 5.8% in annual terms. By the results of 2012, the trade balance deficit reached a record level - 6.93 trillion yen. These data affected the downfall in national currency: USDJPY rose to 89.44, and EURJPY - up to 119.24. Today we expected the manufacturing activity data in Eurozone for January (index of purchasing managers, PMI). According to market forecasts, the data may be better than the previous ones for in the manufacturing and services sectors, but it is too early to speak about full restoration. Euro rose slightly against the U.S. dollar during Asian trading session. The pair found support around 1.3300, still trading is within yesterday's range below 1.3350.