ForexLive Asian market wrap: Nothing new from EU summit; HSBC China PMI drops slightly

EU leaders make no progress on Euro bonds, growth or Grexit issues Merkel wants Greece to stay in EZ but they must follow memorandum; Hollande wants growth but not all leaders agreed ECB Draghi: Euro bonds only make sense with fiscal union HSBC May flash PMI 48.7, down from revised 49.3 in April China promises fine-tuning to stimulate growth New Zealand April trade balance +NZD$ 355million, lower than expected 450 million NZ budget sees return to surplus in 3 years, but lot depends on EZ developments Asian markets take a break from large scale repatriation of USD Regional markets +/- 0.2%, staying pretty flat on average Gold $1560/oz; Oil $90.60/bbl Not much movement overall but it has been a nervy session with the market moving sharply on any news headlines. EUR/USD opened with a mild bullish feel as dealers sought to continue on with the late-NY recovery. This was stopped in its tracks by the lack of any positive or new headlines from the EU summit. EUR/JPY fell sharply on risk aversion plays but has slowly recovered on the back of the Chinese details on how growth might be sustained. BOK was seen selling USD/KRW in early trade and we can expect to hear that they are selling EUR/USD during the European session. Ranges: EUR/USD 1.2555/98; EUR/JPY 99.69/100.16 AUD/USD and NZD/USD have followed similar lines to the EUR/USD, rally early but reversing on the lack of EU developments. The NZD ignored the trade data and the budget statement and the AUD saw some volatility after the flash PMI, with AUD/JPY falling 20 pips, rallying 40 and then going back to where it was. Ranges: AUD/USD .9720/70, NZD/USD .7481/.7528, AUD/JPY 77.20/70 USD/JPY has had a tight 16 pip range between 79.39/55, moving only on cross flows. Cable traded 1/5673/1.5701, EUR/GBP saw .8005/24 and EUR/CHF was usual 1.2004/14.