The preliminary Australian CBA PMI report showed the Manufacturing, Services and Composite PMI contracting below the 50.0 level that indicates contraction. This served as the latest reminder that more economic pain may follow. The AUDUSD remained stable at support, but how will today’s US economic data impact price action? Today’s fundamental analysis will take a look at price action in both directions.
Trade concerns are on the rise, US impeachment procedures are ongoing and economic data is mixed. Today’s PMI reports are expected to move the US Dollar. Final consumer confidence data will also be released, together with a regional report. The AUDUSD moved into a strong support area, how will price action react to today’s US economic data? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here is the key factor to keep in mind today for Australian Dollar trades:
- Australian CBA Manufacturing PMI, CBA Services PMI, and CBA Composite PMI: The Preliminary Australian Manufacturing PMI for November was reported at 49.9. Forex traders can compare this to the Australian CBA Manufacturing PMI for October that was reported at 50.0. The Preliminary Australian CBA Services PMI for November was reported at 49.5. Forex traders can compare this to the Australian CBA Services PMI for October that was reported at 50.8. The Preliminary Australian CBA Composite PMI for November was reported at 49.5. Forex traders can compare this to the Australian CBA Composite PMI for October that was reported at 50.0.
Here are the key factors to keep in mind today for US Dollar trades:
- US Markit Manufacturing PMI, Services PMI, and Composite PMI: The Preliminary US Markit Manufacturing PMI for November is predicted at 51.5. Forex traders can compare this to the US Markit Manufacturing PMI for October that was reported at 51.3. The Preliminary US Markit Services PMI for November is predicted at 51.0. Forex traders can compare this to the US Markit Services PMI for October that was reported at 50.6. The Preliminary US Markit Composite PMI for November is predicted at 51.9. Forex traders can compare this to the US Markit Composite PMI for October that was reported at 50.9.
- US Michigan Consumer Sentiment: Final US Michigan Consumer Sentiment for November is predicted at 95.7. Forex traders can compare this to previous US Michigan Consumer Confidence for November that was reported at 95.7. Final Current Conditions for November are predicted at 111.4 and Final Expectations are predicted at 86.1. Forex traders can compare this to previous Current Conditions for November that were reported at 111.4 and to Expectations that were reported at 86.1.
- US Kansas City Fed Manufacturing Activity Index: The US Kansas City Fed Manufacturing Activity Index for November is predicted at -2. Forex traders can compare this to the US Kansas City Fed Manufacturing Activity Index for October that was reported at -3.
Should price action for the AUDUSD remain inside the or breakout above the 0.6770 to 0.6815 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6785
- Take Profit Zone: 0.6895 – 0.6930
- Stop Loss Level: 0.6750
Should price action for the AUDUSD breakdown below 0.6770 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6750
- Take Profit Zone: 0.6670 – 0.6700
- Stop Loss Level: 0.6770
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