Euro topped 1.3300 mark against the US dollar today, hitting its highest level in nearly two months on strong technical momentum and a latest pullback in risky assets in Asia. The currency continues to broadly weighed down by debt stricken Greece which has been kept afloat for the last two years by euro110 billion ($145 billion) in international rescue loans.
Meanwhile, risky assets fell in Asia today after China released data showing consumer prices had risen 4.5 percent in January over a year earlier, up from the previous month's 4.1 percent. Food prices jumped 10.5 percent, driven by a 25 percent gain in the cost of pork, the staple meat in China.
The People's Bank of China eased lending curbs in December to promote growth in the slowing economy. But the unexpected jump in the cost of living could make the central bank wary of carrying out further steps to loosen credit.
Japan's core machinery orders for December 2011 fell by 7.1 percent on a seasonally adjusted basis, the Cabinet Office said. The figure, which excludes the volatile shipping and electric power industries, marked a downturn from a 14.8 percent expansion in November.
Euro kept on piling gains after a mini break lower yesterday. The single currency is quoting at 1.3306 against the US dollar right now but could run into heavy resistances as EMA 100 on the daily charts, currently placed at 1.3320 comes into play.
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