INVESTORS AWAIT KEY MANUFACTURING AND JOBS DATA

MANUFACTURING AND PAYROLLS

During the upcoming trading week Manufacturing and Jobs data from the world’s two largest economies takes centre stage. The Chinese economy releases key Manufacturing and Services PMI data during the early part of the week, while the United States economy releases Manufacturing data and the important ADP and Non-farm Payrolls Job reports.

We also see the release of the FOMC Meeting Minutes and get a key interest rate decision from the Reserve Bank of Australia, who are expected to keep rates on hold. The eurozone and United Kingdom economies will release key monthly PMI Manufacturing and Services data this week.

Monday 2nd July, CNH Manufacturing PMI

The Chinese Purchasing Managers Index is released by Markit Economics, and is a key composite indicator that offers an overall view of the activity in the Chinese manufacturing sector, and acts as a leading indicator for the whole economy. This months reading is expected to tick down slightly from the previous month, at a time when trade tensions between the United States and Chinese governments are increasing.

• The USDJPY pair is bullish while trading above the 110.25 level, key resistance is found at the 111.00 and 111.41 levels.
• If the USDJPY pair moves below the 110.00 level, we may see a corrective move back towards the 109.54 and 109.00 levels.

Tuesday 3rd July, AUD RBA Rate Statement

The Reserve Bank of Australia are expected to keep interest rates on hold this week, with the RBA rate statement likely to be the main focus of investors attention. The RBA rate statement is made by the Reserve Bank Board and contains the outcome of bank's interest rate decision, and discusses the economic conditions that influenced the decision.

• The AUDUSD pair is bearish while trading below the 0.7460 level, sellers may test towards the 0.7310 and 0.7230 levels.
• If the AUDUSD pair moves above the 0.7460  level, buyers may test back towards the 0.7510 and 0.7555 levels.

Wednesday 4th July, GBP UK Services PMI

The UK Services PMI is released by both the Markit Economics and the Chartered Institute of Purchasing & Supply. The United Kingdom Services PMI measures the economic situation in the United Kingdom services sector and provides an accurate picture of the current state of UK sales and employment. A rise in the UK Services PMI indicates that material purchases are increasing and that the economic outlook is positive for the UK economy.

• The GBPUSD pair is bearish while trading below the 1.3205 level, further downside towards 1.3140 and 1.3101 seems likely.
• If the GBPUSD pair moves above the 1.3205 level, buyers are likely to test towards the 1.3280 and 1.3400 resistance levels.

Thursday 5th July, US FOMC Meeting Minutes

The Federal Open Market Committee gives some of the best insight into the monetary policy decision making process and what the FED thinks about economic developments inside and outside of the US. The FOMC meet eight per calendar year, and provide a clear guide to the future United States interest rate policy.

• The USDCHF pair is bearish while trading below the 0.9949 level, further downside towards 0.9785 and the 0.9680 levels seems possible.
• If the USDCHF pair moves above the 0.9949 level, buyers will likely test towards the 0.9993 and 1.0055 levels.

Friday July 6th, US Nonfarm Payrolls Job Report

The United States Nonfarm Payrolls job report is expected to show that 185,000 new jobs were created in the US economy during the month of June. The NFP job report measures the effective change of total number of paid US workers involved in any business, excluding  general government employees, private household employees, employees of non-profit organisations that provide assistance to individuals and farm employees.

• The EURUSD pair is bullish while trading above the 1.1620 level, further upside towards 1.1724 and 1.1800 levels remains possible.
• If the EURUSD pair declines below the 1.1620 level, sellers are likely to test back towards the 1.1600 and 1.1540 support levels.