For the 24 hours to 23:00 GMT, the EUR declined 0.17% against the USD and closed at 1.1206, weighed down by steep losses in manufacturing activity in the euro area.
Data showed that the Euro-zone’s final manufacturing PMI tumbled to a level of 47.5 in March, contracting to its lowest level in six years, amid decline in demand and production. Market participants and preliminary figures had envisaged the PMI to fall to a level of 47.6. The PMI had registered a reading of 49.3 in the prior month. Additionally, the final consumer price index (CPI) recorded a less-than-expected rise of 1.4% on an annual basis in March, compared to a rise of 1.5% in the prior month. The preliminary figures had indicated a rise of 1.5%. Meanwhile, the region’s unemployment rate remained unchanged at 7.8% in February, in line with market expectations.
Separately, in Germany, the Markit manufacturing PMI contracted to a level of 44.1 in March, hitting its lowest level since July 2012 and compared to market consensus for a fall to a level of 44.7. In the previous month, the PMI had registered a reading of 47.6.
In the US, data revealed that the US final Markit manufacturing PMI fell to a level of 52.4 in March, compared to preliminary figures and market expectations for a drop to a level of 52.5. The PMI had recorded a reading of 53.0 in the prior month. Moreover, the nation’s advance retail sales unexpectedly eased 0.2% on a monthly basis in February, defying market consensus for a rise of 0.2%. Advance retail sales had registered a revised rise of 0.7% in the preceding month.
On the contrary, the ISM manufacturing activity index rose to a level of 55.3 in March, compared to a reading of 54.2 in the prior month. Market participants had envisaged the index to rise to 54.5. Additionally, the US construction spending surprisingly advanced to a 9-month high level of 1.0% on a monthly basis in February, defying market anticipations for a drop of 0.2%. In the previous month, construction spending had registered a revised rise of 2.5%. Moreover, business inventories advanced 0.8% on a monthly basis in January, more than market forecast and compared to a revised similar rise in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1203, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1183, and a fall through could take it to the next support level of 1.1164. The pair is expected to find its first resistance at 1.1236, and a rise through could take it to the next resistance level of 1.1270.
Looking ahead, traders would keep an eye on the Euro-zone’s producer price index for February, set to release in a few hours. Later in the day, the US durable goods orders for February, will keep investors on their toes.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.