Forex traders will focus on final Services and Composite PMI data out of the Eurozone with releases on nine different components across the continent. Monday’s Manufacturing PMI data confirmed previous readings for August and economists anticipate the same for today’s set of data. Key Eurozone retail sales for July will also be released where a monthly contraction is expected. What impact will this have on the EURAUD which is currently in the midst of a sell-off? This morning’s fundamental analysis will take a look at the downside potential for an extension of the current move as well as at the upside risks in case of a price action reversal.

The Australian Services PMI for August surprised to the upside this morning and showed an expansion in the sector. Countering the positive reading was the final CBA PMI for August which was revised lower and deeper into contractionary territory. Adding to bullish momentum in the Australian Dollar was a bigger than expected expansion in the Chinese services sector which clocked in at a three-month high despite the trade war President Trump claims to go well for the US and badly for China. How much further can the EURAUD accelerate to the downside? Subscribe to the PaxForex Daily Fundamental Analysis and take the profitable side of this currency pair.