By FXEmpire.com

Analysis and Recommendation: (close of Asian session)

The USD/CNY traded at 6.3048 as the yuan weakened on disappointing manufacturing data from China.

China’s manufacturing activity contracted further in April, although the sector improved from levels seen in March, a preliminary reading from HSBC showed Monday. HSBC’s so-called “flash” Purchasing Managers’ Index rose to 49.1 in April, compared with a final reading of 48.3 in March. A reading below 50 shows contraction, while one above 50 indicates an expansion. The improvement in factory conditions in April suggests that the earlier easing measures have started to work and hence should ease concerns of a sharp growth slowdown.

Eco data for Monday April 23, 2012 actual v. forecast that affect the ANZ, JPY, NZD and CNY

Apr. 23

AUD

PPI (QoQ)

-0.3%

0.4%

0.3%

CNY

Chinese HSBC Manufacturing PMI

49.10

48.30

Economic Events scheduled for April 24, 2012 that affect the NZD, AUD, JPY and CNY

02:30 AUD CPI (QoQ) 0.6%

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

02:30 AUD Trimmed Mean CPI (QoQ) 0.6% 0.6%

The Trimmed Mean Consumer Price Index (CPI) measures the change in the price of goods and services purchased by consumers, excluding the most volatile 30% of items. This data helps illustrate underlying inflation trends. A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.

15:00 USD CB Consumer Confidence 70.3 70.8

Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism.

15:00 USD New Home Sales 320K 313K

New Home Sales measures the annualized number of new single-family homes that were sold during the previous month. This report tends to have more impact when it’s released ahead of Existing Home Sales because the reports are tightly correlated

Government Bond Auctions (this week)

Apr 24 00:30 Japan Auctions 20Y JGBs

Apr 24 08:30 Holland Eur 1.5-2.5bn Jul 2014 & Jan 2037 DSL auction

Apr 24 08:30 Spain 3 & 6M T-bill auction

Apr 24 09:10 Italy Auctions CTZ/BTPei

Apr 24 14:30 UK Details Conventional Gilt auction on May 01 & I/L auction on May 03

Apr 24 17:00 US Auctions 2Y Notes

Apr 25 09:10 Sweden Auctions T-bills

Apr 25 09:30 Germany Eur 3.0bn new Jul 2044 Bund

Apr 25 14:30 Sweden Details nominal bond auction on May 02

Apr 25 17:00 US Auctions 5Y Notes

Apr 26 00:30 Japan Auctions 2Y JGBs

Apr 26 09:10 Italy BOT auction

Apr 26 14:30 Sweden Details I/L bond auction on May 03

Apr 26 17:00 US Auctions 7Y Notes

Apr 27 09:10 Italy BTP/CCTeu auction

Click here a current USD/CNY Chart.

Originally posted here