New York hits GBPUSD in early trade as the market focuses back on the dollar buying - for now.
After rallying overnight on the back of stronger PMI data out of the UK this morning, NY has come in selling the pair (buying the dollar). The price dipped below the key 1.6158 level but held the 100 bar MA on the 5 minute chart in early NY trading (BLUE LINE in the chart above). Watch the 100 bar MA this morning. As long as the price can remain above, the bias remains to the upside.
There is no economic data out at 8:30 AM in NY and Canada. At 10:00 AM the December ISM Manufacturing index is due with the expectation of an increase to 54.1 from 53.6 last month. This would be the 5th month with the index above the 50 level which signals expansion. The market tends to look at the Employment and New Order components. Last month employment fell to 50.8 from 53.1. The New Order component meanwhile rose to 60.3 from 58.5 the prior month. The recent high reached 64.9 in August 2009.
The component pieces last month for comparison came in at the following:
Manufacturing index 53.6
Prices paid 55.0
Production 59.9
New orders 60.3
Backlog of orders 52.0
Supplier deliveries 55.7
Inventories 41.3
Customer inventories 37.0
Employment 50.8
New export orders 56.0
Imports 51.5
(Aug 30, 2010)
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