The Australian service sector expanded strongly according to the Australian AiG Performance of Services Index, but this was conflicted by the final reading of the Australian CBA Services PMI which was revised down to 50.0 and just barely avoided contraction. The final CBA Composite PMI was also revised down to 50.0 and the Chinese services sector eased slightly as measured by the Caixin Services PMI while the Caixin Composite PMI inched up. The AUDUSD remained stable at resistance, what’s next for price action? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Forex traders will focus on today’s ISM Non-Manufacturing Index out of the US which is expected to move the US Dollar. Economic data out of the US has confirmed a slowing economy with manufacturing in a recession. The US Dollar has weakened after three consecutive interest rate cuts by the US Fed, but they will take time to filter through the economy. How will today’s data impact the AUDUSD? Today’s fundamental analysis will take a look at the upside potential as well as downside risk in this currency pair.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian AiG Performance of Services Index: The Australian AiG Performance of Services Index for October was reported at 54.2. Forex traders can compare this to the Australian AiG Performance of Services Index for September which was reported at 51.5.
- Australian CBA Services PMI and CBA Composite PMI: The Final Australian CBA Services PMI for October was reported at 50.0. Forex traders can compare this to the previous Australian CBA Services PMI for October which was reported at 50.8. The Final Australian CBA Composite PMI for October was reported at 50.0. Forex traders can compare this to the previous Australian CBA Composite PMI for for October which was reported at 50.7.
- Australian ANZ Roy Morgan Weekly Consumer Confidence Index: The Australian ANZ Roy Morgan Weekly Consumer Confidence Index for the week of November 3rd was reported at 113.5. Forex traders can compare this to the Australian ANZ Roy Morgan Weekly Consumer Confidence Index for the week of October 27th which was reported at 110.4.
- Chinese Caixin Services PMI and Chinese Caixin Composite PMI: The Chinese Caixin Services PMI for October was reported at 51.1. Economists predicted a figure of 51.1. Forex traders can compare this to the Chinese Caixin Services PMI for September which was reported at 51.3. The Chinese Caixin Composite PMI for October was reported at 52.0. Forex traders can compare this to the Chinese Caixin Composite PMI for for September which was reported at 51.9.
- Australian RBA Interest Rate Decision: The Australian RBA left interest rates unchanged at 0.75%. Economists predicted no change in interest rates. Forex traders can compare this to the previous Australian RBA Interest Rate Decision where interest rates were left unchanged at 0.75%.
Here are the key factors to keep in mind today for US Dollar trades:
- US Trade Balance: The US Trade Balance for September is predicted at -$52.5B. Forex traders can compare this to the US Trade Balance for August which was reported at -$54.9B.
- US Markit Services PMI and Markit Composite PMI: The US Final Markit Services PMI for October is predicted at 51.1 and the US Final Markit Composite PMI is predicted at 51.2. Forex traders can compare this to the previous US Markit Services PMI for October which was reported at 51.0 and to the previous US Markit Composite PMI which was reported at 51.2.
- US ISM Non-Manufacturing PMI: US ISM Non-Manufacturing PMI for October is predicted at 53.5. Forex traders can compare this to the US ISM Non-Manufacturing PMI for September which was reported at 52.6. The ISM Non-Manufacturing Business Activity Index for October is predicted at 55.0. Forex traders can compare this to the ISM Non-Manufacturing Business Activity Index for September which was reported at 55.2.
- US JOLTS Job Openings: US JOLTS Job Openings for September a predicted at 7.028M. Forex traders can compare this to US JOLTS Job Openings for August which were reported at 7.051M.
Should price action for the AUDUSD remain inside the or breakout above the 0.6880 to 0.6930 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6900
- Take Profit Zone: 0.7040 – 0.7080
- Stop Loss Level: 0.6850
Should price action for the AUDUSD breakdown below 0.6880 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6850
- Take Profit Zone: 0.6670 – 0.6710
- Stop Loss Level: 0.6900
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