USD/JPY slips as Nikkei falls in risk-off market after disappointing China PMI data

January 6, 2014

The first full trading week of 2014 began today, with Japan opening for the first time after a two-week holiday.

The Nikkei traded down in a risk-off environment as yen was lifted by safe-haven demand. Disappointing China services PMI data weighed on investor sentiment. 

The world’s second largest economy showed signs of sluggishness after the HSBC/ Markit PMI for the service sector recorded the weakest level in over two years.

While still in the expansionary zone (above 50 points), the services PMI slipped to 50.9 in December, the weakest since August 2011, compared to a previous 52.5.

As a result, the USDJPY pair was heavy, plunging from a high of 104.95 to lows of 104.15 yen, losing half a percent in the Asian session. The main driver for the dollar this week will be Friday’s US jobs data (nonfarm payrolls).

The euro was also affected, with EURJPY being sold off to 142.65 from 141.50 yen.

Meanwhile, the EURUSD was pinned down against the US dollar, although little changed in the session, edging slightly lower to $1.3570. Key data for the euro later today will be services PMI data from the Euro zone.

Aussie was weak on the back of the soft China PMI data, since China is a major export destination for Australia. AUDUSD traded between $0.8942 and $0.8982.

Publication source
FxNet information  FxNet reviews

October 24, 2016
Dollar at a 3-week winning streak
The US dollar completed three weeks of back to back gains with the US dollar index seen trading above the 98.55 handle. Without any pullback so far, further upside could come at a significant risk...
October 24, 2016
Golden week for dollar but USD/JPY bucks trend
It has been a very good week for the US dollar and a really bad one for the euro and Canadian dollar, among others. The rally has lifted the Dollar Index to its highest level since early February and possibly on course to 100...
October 21, 2016
EUR/USD remained unchanged after the ECB
The price maintained its bearish tone on Thursday. The EUR/USD pair stayed around its recent lows during the day. The euro slightly strengthened towards 1.1000 ahead of the US opening. The 50-EMA limited the euro recovery in the 1 hour chart...

Grand Capital Rating
Tickmill Rating Rating
FxPro Rating
FXTM Rating
OANDA Rating

Binary Brokerz Rating
OptionsXO Rating
TropicalTrade Rating
OptionFair Rating
EZTrader Rating
Banc De Binary Rating