The forex market on Tuesday looked quite dismal ahead of the revelation of weak manufacturing data from China. The euro was trading very low against the USD, as the concerns over global growth occupied the minds of the financial analysts and investors alike.
EUR/USD pair traded at 1.3032 in the Asian trading session later in the evening, even as the duo tried to strengthen at 1.3042, coming off 0.17 %. The financial experts had anticipated the duo to gain strength at 1.3000, while it was expected to face resistance at 1.3083, which was the lower and higher mark witnessed on April 17 and April 22, respectively.
The Australian dollar also saw a dip of 0.44 % against its U.S. counterpart as the AUD/USD pair was trading at 1.0230 in the Asian session Tuesday. Experts predicted the duo to find support at 1.0249 and face resistance at 1.0337, the low and high of February 25 and April 18, in that order.
The initial statistics disclosed by purchasing managers index of HSBC in China was at 50.5 for this month, which was quite lower than the final reading in March, which was 51.6. Experts blame the slow growth in the Chinese manufacturing sector for the second quarter for the weak economic data.
Another reason cited for the dismal performance of euro was the pressure it was facing as financial experts awaited the release of PMI data for euro zone. The concerns that weak economic data would probably push the European Central Bank to cut down the rates, weighed heavily on the minds of economists.
The EUR/GBP was not affected much as the pair traded at 0.8542. On the other hand, the EUR/JPY slipped by 0.79 % to trade at 128.62. The AUD/JPY pair also witnessed a drop of 0.55 % to trade at 101.41. The EUR/AUD saw some positive surge of 0.25 % as it traded at 1.2756.
The latest export orders index also slipped to 48.6 in this month, while it was 50.5 in March. A day before the release of China PMI data, Australian Federal Treasurer Wayne Swan had revealed that the Australian government had faced a AUD7.5 billion revenue hit after October.