Forex traders will get another dose of PMI data out of the Eurozone, Services PMI and Composite PMI will be released after Monday’s Manufacturing PMI data which came in below expectations. Will today’s data follow suit and drag the Euro lower or will it surprise to the upside? The EURAUD is in a corrective phase which is taking a breather after the RBA cut interest rates by 25 basis points to 1.00%. Will bears get the data they need in order to extend the sell-off? Investing in forex offers traders a profitable income stream, sign-up today to the PaxForex Daily Fundamental Analysis and let our expert analysts guide you to over 500 pips in monthly profits!
Here are the key factors to keep in mind today for Euro trades:
- Spanish Services PMI: The Spanish Markit Services PMI for June is predicted at 52.7. Forex traders can compare this to the Spanish Markit Services PMI for May which was reported at 52.8.
- Italian Services PMI and Composite PMI: The Italian Markit Services PMI for June is predicted at 50.0. Forex traders can compare this to the Italian Markit Services PMI for May which was reported at 50.0. The Italian Markit Composite PMI for June is predicted at 49.5. Forex traders can compare this to the Italian Markit Composite PMI for May which was reported at 49.9.
- French Services PMI and Composite PMI: The Final French Markit Services PMI for June is predicted at 53.1 Forex traders can compare this to the previous French Markit Services PMI for for June which was reported at 53.1. The Final French Markit Composite PMI for June is predicted at 52.9. Forex traders can compare this to the previous French Markit Composite PMI for for June which was reported at 52.9.
- German Services PMI and Composite PMI: The Final German Markit Services PMI for June is predicted at 55.6. Forex traders can compare this to the previous German Markit Services PMI for for June which was reported at 55.6. The Final German Markit/BME Composite PMI for June is predicted at 52.6. Forex traders can compare this to the previous German Markit/BME Composite PMI for for June which was reported at 52.6.
- Eurozone Services PMI and Composite PMI: The Final Eurozone Markit Services PMI for June is predicted at 53.4. Forex traders can compare this to the previous Eurozone Markit Services PMI for for June which was reported at 53.4. The Final Eurozone Markit Composite PMI for June is predicted at 52.1. Forex traders can compare this to the previous Eurozone Markit Composite PMI for for June which was reported at 52.1.
Australia reported a series of Services PMI and a Composite PMI report which showed an extension of the slowdown, but monthly building permits increased. The rise in oil and gold prices also provide a bullish driver for the Australian economy which reported a bigger than expected trade surplus for May. China also reported a further decrease in its Services and Composite PMI. Can the EURAUD sell-off extend down into its next support level or is a short-covering rally brewing? Today’s fundamental analysis will take a look at both sides of the trade.
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 June was reported at 52.2. Forex traders can compare this to the Australian AiG Performance of Services Index for May which was reported at 52.5.
- Australian CBA Services PMI and CBA Composite PMI: The Final Australian CBA Services PMI for June was reported at 52.6. Forex traders can compare this to the previous Australian CBA Services PMI for June which was reported at 53.3. The Final Australian CBA Composite PMI for June was reported at 52.5. Forex traders can compare this to the previous Australian CBA Composite PMI for for June which was reported at 53.1.
- Australian Building Approvals: Australian Building Approvals for May increased by 0.7% monthly and decreased by 19.6% annualized. Economists predicted a flat reading of 0.0% monthly and a decrease of 21.5% annualized. Forex traders can compare this to Australian Building Approvals for April which decreased by 3.4% monthly and by 23.4% annualized.
- Australian Trade Balance: The Australian Trade Balance for May was reported at A$5,745M. Economists predicted a figure of A$5,250M. Forex traders can compare this to the Australian Trade Balance for April which was reported at A$4,820M.
- Chinese Caixin Services PMI and Chinese Caixin Composite PMI: The Chinese Caixin Services PMI for June was reported at 52.0. Economists predicted a figure of 52.6. Forex traders can compare this to the Chinese Caixin Services PMI for May which was reported at 52.7. The Chinese Caixin Composite PMI for June was reported at 50.6. Forex traders can compare this to the Chinese Caixin Composite PMI for for May which was reported at 51.5.
Should price action for the EURAUD remain inside the or breakdown below the 1.6085 to 1.6165 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6120
- Take Profit Zone: 1.5780 – 1.5880
- Stop Loss Level: 1.6200
Should price action for the EURAUD breakout above 1.6165 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6200
- Take Profit Zone: 1.6360 – 1.6445
- Stop Loss Level: 1.6165
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