Here are the key factors to keep in mind today for Gold trades:
- Chinese Industrial Profits: Industrial profits in China slumped by 8.8% in August annualized. Forex traders can compare this to the decrease of 2.9% which was reported in June. China has provided plenty of economic reports which show a much bigger slowdown in their economy which has contributed to the collapse in commodity prices. This has applied bearish pressures on the likes of the Australian Dollar, the New Zealand Dollar and the Canadian Dollar which are all dependent on commodity exports.
- US Personal Income & Personal Spending: Personal income is expected to increase by 0.4% in August and personal spending is expected to increase by 0.3%. Forex traders can compare this to July’s increase of 0.4% in personal income and 0.3% in personal spending. Real personal spending is expected to increase by 0.4% in August and forex traders can compare this to the increase of 0.2% which was reported in July. The US consumer is not known to spend less than they earn and usually spend more than they earn which makes this a troublesome trend for the US Dollar. The PCE Deflator is expected to show no gain at 0.0% in August monthly and a 0.3% increase annualized. Forex traders can compare this to the 0.0% monthly reported in July and the annualized increase of 0.3%. The core PCE Deflator is expected to increase by 0.1% in August monthly and 1.3% annualized. Forex traders can compare this to the increase of 0.1% reported in July monthly and 1.2% annualized.
- US Pending Home Sales: Pending home sales in the US are expected to increase by 0.4% in August monthly and by 8.0% annualized. Forex traders can compare this to July’s increase of 0.5% monthly and 7.2% annualized. The US housing sector plays a very big role in the US economy and a strong US Dollar often depends on a very strong US housing market and the consumer spending which evolves around it.
- US Dallas Fed Manufacturing Index: The Dallas Fed Manufacturing Index is expected to come in at -10.0 in September. Forex traders can compare this to the Dallas Fed Manufacturing Index of -15.8 which was reported in August. Many regional manufacturing activity reports came in much worse than economists predicated and overall showed a contraction in the sector which suggests a much weaker economy in the US.
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