Korean surplus of $2.7B for the month was lower yet followed the Dollar index down becoming stronger and Chinese Economic data fooled quite a few with the state sponsored PMI going to another new low but staying above 50.
Economic conditions have improved however as China’s property is returning to a comeback and both Indonesia and China reported stronger PMIs , Indonesia scoring a 51.4 and China manufacturing scoring a high49.2 on the HSBC MarkIT surveys ahead of last month’s 48. While lead times and prices are weaker in the Chinese case, in the case of indonesia they are already stroner reflecting continuing groth as the previous series was also in expansion.
Indian data as usual is likely going to be in the comfortable 50s and then next week Services data would again be leading US.
Nifty is flat, banks are yet strong, HDFC Bank should get caught up with the leaders in pricign and the Northern power grid’s woes unlikely to affect production and services further. The Rupee should strengthen further as the Euro tracks to 1.23 and the Rupee has opened at nearly the same day before yesterday levels as it is apparently rudderless, india having being read land clean like a whistle, Rupee decides to create a intra day breathing and diving range with new Olympic disciplines in and out of matter
Economically India is stronger but as the rupee says, prove it! so do equities, cautiously optimistic and apparently time for a technical dragdown to the earlier Fibonacci levels would now make extremely sensible trading.
- India Morning Report: Rupee speculation loses its edge, VC news floods “Active” India (awardz.wordpress.com)
- Weakness in Commodities does not a Rupee trade make. (awardz.wordpress.com)
- Morning Trading Strategies – India July 30, 2012 (awardz.wordpress.com)