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Forex - EUR/USD higher ahead of euro zone PMI data

Published 08/23/2011, 02:24 AM
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Investing.com – The euro was higher against the U.S. dollar on Tuesday, as risk appetite was supported by better-than-anticipated Chinese manufacturing data, while investors awaited the release of preliminary PMI data from the single currency bloc.

EUR/USD hit 1.4393 during late Asian trade, the daily high; the pair subsequently consolidated at 1.4391, rising 0.23%.

The pair was likely to find support at 1.4258, the low of July 19 and a four-day low and resistance at 1.4452, the high of the same day.

A preliminary reading of the HSBC's China purchasing managers' index edged up to 49.8 in August, from a final reading of 49.3 the previous month. There had been some speculation that the reading may turn out to be much weaker.

Later in the day, the euro zone was to release preliminary data on activity in the manufacturing and service sectors. Last month data showed that manufacturing activity in Germany, the euro zone’s largest economy, contracted more-than-expected.

Meanwhile, the euro was almost unchanged against the pound, with EUR/GBP inching up 0.01% to hit 0.8729.

Also Tuesday, the ZEW Centre for Economic Research was to release a report on German business confidence, while the U.S. was to release official data on new home sales.

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