The UK election campaign started as PM Johnson is trying to secure a majority in Parliament in order to get this Brexit deal approved. The British Pound will be exposed to plenty of headlines until Britons head to the first December election in almost one century. Forex traders will also get the October Manufacturing PMI today to close out an eventful week, what impact will it have on the GBPAUD? Today’s fundamental analysis will take a look at price action in both directions.
The Australian manufacturing sector slowed down sharply as two reports released this morning showed PMI reading at 51.6 and 50.0, barely escaping contraction. The Australian Dollar came under selling pressure, but a better-than-expected Chinese Manufacturing PMI kept losses in check. Inflation slowed down in the third-quarter on an annualized basis and the RBA Commodity Index contracted. How will the GBPAUD react to economic data released later in today’s session? 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 British Pound trades:
- UK Markit Manufacturing PMI: The UK Markit Manufacturing PMI for October is predicted at 48.3. Forex traders can compare this to the UK Markit Manufacturing PMI for September which was reported at 48.3.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian AiG Performance of Manufacturing Index: The Australian AiG Performance of Manufacturing Index for October was reported at 51.6. Forex traders can compare this to the Australian AiG Performance of Manufacturing Index for September which was reported at 54.7.
- Australian CBA Manufacturing PMI: The Final Australian CBA Manufacturing PMI for October was reported at 50.0. Economists predicted a figure of 50.1. Forex traders can compare this to the previous Australian CBA Manufacturing PMI for October which was reported at 50.1.
- Australian CoreLogic House Prices: Australian CoreLogic House Prices for October increased by 1.4% monthly. Forex traders can compare this to Australian CoreLogic House Prices for September which increased by 1.1% monthly.
- Australian PPI: The Australian PPI for the third-quarter increased by 0.4% quarterly and by 1.6% annualized. Forex traders can compare this to the Australian PPI for the second-quarter of which increased by 0.4% quarterly and by 2.0% annualized.
- Chinese Caixin Manufacturing PMI: The Chinese Caixin Manufacturing PMI for October was reported at 51.7. Economists predicted a figure of 51.0. Forex traders can compare this to the Chinese Caixin Manufacturing PMI for September which was reported at 51.4.
- Australian RBA Commodity Index: The Australian RBA Commodity Index for October decreased by 4.2% annualized. Forex traders can compare this to the Australian RBA Commodity Index for September which increased by 1.8% annualized.
Should price action for the GBPAUD remain inside the or breakdown below the 1.8720 to 1.8850 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8770
- Take Profit Zone: 1.8075 – 1.8280
- Stop Loss Level: 1.8925
Should price action for the GBPAUD breakout above 1.8850 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.8925
- Take Profit Zone: 1.9090 – 1.9230
- Stop Loss Level: 1.8850
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