ForexLive Asian market wrap: China PMI shows slight improvement

HSBC China flash PMI for February improves to 49.7, from a final reading in January of 48.8 Any number below 50.0 still indicates an overall contraction in the manufacturing industry Australian Q4 wage price index +1% QoQ, +3.6% YoY USD/JPY breaches barrier at 80.00 in late trade Regional stocks have flat day overall Gold $1756/oz, Oil $106/bbl The AUD was again the main mover in Asia. Firstly the market focussed on stop-loss sell orders below 1.0625 which were triggered shortly before the China PMI data was released. Some cross orders had an effect as well, with solid sell orders in EUR/AUD and Sovereign bids in EUR/USD ensuring that the AUD/USD dips were met with good demand. AUD/JPY demand after the PMI data has also had an impact. The fact that PMI is still below 50 augurs well for further RRR cuts but the improvement since last month does help risk sentiment. Ranges: 1.0608/76 USD/JPY has edged to multi-month highs above 80.00 in late session trade, as the market targeted a barrier at 80.00 and reported stop-loss orders just above. Movements have been very orderly. Ranges: 79.65/80.06 EUR/USD has been relatively quiet, dominated mainly by flows in the crosses, mainly in EUR/AUD and EUR/JPY. Sovereign bids are also reported in EUR/USD near 1.3200 and they dissuaded intraday bears from getting overly aggressive. Ranges: 1.3209/49; EUR/JPY 105.41/89 Cable 1.5760/90; EUR/CHF 1.2067/78