Recent reports out of China suggest that growth forecasts for 2012 will be reduced as the European crisis weighs heavily on the export market. Recent manufacturing data out of the US shows that it is starting to concentrate more on home production rather than importing cheap goods from China, and this will also show up in today’s data. We should see some volatility in the AUD around the time of the data.
EUR/CHF will be another source of volatility after the resignation of SNB chief Hildebrand and the market is eying large stops below 1.2100. That said, overnight reports suggest that there was significant buying interest in the 1.2100/20 region overnight and it was not from the SNB, who weren’t sighted.
Good luck today.
