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Sep 3, 2018

CENTRAL BANKS AND NONFARM PAYROLLS JOBS REPORT IN FOCUS

CENTRAL BANKS AND JOBS

During the upcoming trading week, traders and investors look to interest rate decisions from the Reserve Bank of Australia and the Bank of Canada. The RBA is expected to keep rates on hold for a twenty-third consecutive month, while expectations are high that the Bank of Canada may hike rates this week. The world’s largest economy also releases the Nonfarm Payrolls Job report later this week, with most economists expecting that the American economy created 187,000 new jobs during the month of August.

Manufacturing data is also in also heavily in focus this week, with key PMI Manufacturing data for August being released from the United States, Chinese, UK and eurozone economies.

Monday 3rd September, GBP UK Manufacturing PMI

The United Kingdom Manufacturing PMI is expected to come in at 53.8 for the month of August, which is slightly down from the July reading of 54.0. The UK Manufacturing PMI is based on a survey of purchasing managers in the manufacturing sector. Respondents are surveyed for their views on a wide range of business conditions, including employment, new orders, prices, and inventories.

  • The GBPUSD pair is only bullish while trading above the 1.2930 level, key resistance is found at the 1.3040 and 1.3101 levels.
  • If the GBPUSD pair moves below the 1.2930 level, sellers will likely test towards the 1.2850 and 1.2800 support levels.

Tuesday 4th September, AUD RBA Rate Decision

The Reserve Bank of Australia Rate Decision is the market interest rate on overnight funds and stands as the central monetary authority for the Australian economy. The Reserve Bank of Australia is widely expected to leave the nations interest rate unchanged at 1.50% for a twenty-third consecutive month.

  • The AUDUSD pair is bearish while trading below the 0.7230 level, key support is found at the 0.7110 and 0.7000 levels.
  • If the AUDUSD pair moves above the 0.7230 level, buyers may test towards the 0.7280 and 0.7340 levels.

Wednesday 5th September, CAD BOC Rate Decision

The Canadian interest rate decision is made by governing council members of the nations central bank, the Bank of Canada. Market consensus is currently spilt as to whether the Bank of Canada will hike interest rates this week. After the actual rate decision, the central bank releases a policy statement that contains the BOC’s collective perspective on the economy and ideas about future monetary policy.

  • The USDCAD pair is bullish while trading above the 1.3123 level, further upside towards the 1.3220 and 1.3290 levels seems likely.
  • If the USDCAD pair moves below the 1.3123 level, sellers are likely to test towards the 1.2990 and 1.2840 support levels.

Thursday 6th September, USD Manufacturing PMI

The United States PMI Composite Reports on Manufacturing activity in the American economy and represents economic indicators derived from monthly surveys of private sector companies. PMI data provides advance insight into the private sector economy by tracking variables such as output, new orders, employment and prices across key sectors.

  • The EURUSD pair is bullish while trading above the 1.1553 level, further upside towards the 1.1680 and 1.1750 resistance levels seems possible.
  • If the EURUSD pair moves below the 1.1553 level, sellers are likely to test towards the 1.1480 and 1.1350 support levels.

Friday 7th September, US Nonfarm Payrolls Job Report

The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. Non-farm payrolls is the most carefully observed indicator in the employment situation inside the United States. It is considered the most inclusive calculation of job creation, which causes the Nonfarm Payrolls Job report to become highly significant to market participants, due to the great importance of labour in the United States economy.

  • The USDJPY pair is only bullish while trading above the 111.00 level, further upside towards 111.80 and 112.50 levels remains possible.
  • If the USDJPY pair trades below the 111.00 level, sellers are likely to test the 110.10 and 109.55 support levels.
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