Forex traders will get final Eurozone Manufacturing PMI data to start the new trading year. Economists expect no change from the previous reading, but Germany has shown a tendency to surprise to the downside. The EURAUD is in a holding pattern at the lower band of its horizontal support area. Will forex traders ignore December data and look forward to January, and what impact will this have on price action? Today’s fundamental analysis will take a look at price action in both directions.
The Chinese manufacturing sector clocked in below expectations for December, as measured by the Caixin Manufacturing PMI. The PBOC lowered its reserve ratio to 12.50%, down 50 basis points, in support of its fragile economy. Australian data confirmed the manufacturing recession, but forex traders did not react to the data. How will the EURAUD react after PMI data across the Eurozone will be announced? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here are the key factors to keep in mind today for Euro trades:
- Spanish Markit Manufacturing PMI: The Spanish Markit Manufacturing PMI for December is predicted at 47.0. Forex traders can compare this to the Spanish Markit Manufacturing PMI for November, which was reported at 47.5.
- Italian Markit/ADACI Manufacturing PMI: The Italian Markit/ADACI Manufacturing PMI for December is predicted at 47.2. Forex traders can compare this to the Italian Markit/ADACI Manufacturing PMI for November, which was reported at 47.6.
- French Markit Manufacturing PMI: The Final French Markit Manufacturing PMI for December is predicted at 50.3. Forex traders can compare this to the previous French Markit Manufacturing PMI for December, which was reported at 50.3.
- German Markit/BME Manufacturing PMI: The Final German Markit/BME Manufacturing PMI for December is predicted at 43.4. Forex traders can compare this to the previous German Markit/BME Manufacturing PMI for December, which was reported at 43.4.
- Eurozone Markit Manufacturing PMI: The Final Eurozone Markit Manufacturing PMI PMI for December is predicted at 45.9. Forex traders can compare this to the previous Eurozone Markit Manufacturing PMI for December, which was reported at 45.9.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian CBA Manufacturing PMI: The Final Australian CBA Manufacturing PMI for December was reported at 49.4. Economists predicted a figure of 49.4. Forex traders can compare this to the previous Australian CBA Manufacturing PMI for December, which was reported at 49.4.
- Chinese Caixin Manufacturing PMI: The Chinese Caixin Manufacturing PMI for December was reported at 51.3. Economists predicted a figure of 51.6. Forex traders can compare this to the Chinese Caixin Manufacturing PMI for November, which was reported at 51.8.
Should price action for the EURAUD remain inside the or breakdown below the 1.5900 to 1.6000 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.5970
- Take Profit Zone: 1.5685 – 1.5745
- Stop Loss Level: 1.6070
Should price action for the EURAUD breakout above 1.6000 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6070
- Take Profit Zone: 1.6230 – 1.6310
- Stop Loss Level: 1.6000
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