ForexLive Asian market wrap: Improved Chinese PMI gives AUD, commodities a lift

China's PMI for January rose to 50.5 from 50.3 previously China FinMin: inflationary pressure still strong Bundesbank: Warns of turmoil if Greece defaults but still believes very strongly in EUR future Japanese wages still in downtrend Australian Q4 house price index -4.8% YoY Reports put the ratio of EUR/CHF longs to shorts at 24:1 in the retail trading community South Korean January CPI 3.4%, lower than the expected 3.6% Regional stocks mixed with most +0.25% but China and Australia -0.5% Gold $1641/0z; Oil $98.40/bbl The main event risk today was the Chinese PMI, with the market expecting a number just above 49.0 after 50.3 last time. The AUD/USD dipped a few times below 1.0600 during morning trade and dealers noted concerted buying from Chinese names. This led to the usual speculation that the PMI number would surprise to topside, and this was indeed the case. Ranges: 1.0589/1.0638 EUR/USD slipped early in the session with cross flows the main driver. Stops below 99.60 were triggered in EUR/JPY at one stage, but momentum has been lacking overall, and EUR/USD has rebounded to mid-range levels. Range: 1.3051/91 USD/JPY dealers have been reluctant to get overly bearish as we near the 75 handle, but even small rallies are meeting with plentiful supply. Ranges: 76.13/31; EUR/JPY 99.39/89 Cable is capped below a reported barrier at 1.5800 but alrge stops are seen above there. EUR/GBP selling pressure has increased in the last few sessions, but bids are reported today near .8265. EUR/CHF continues to edge lower towards the magical 1.2000 and the SNB.