US INFLATION AND GLOBAL TRADE DATA TAKE CENTER STAGE

During the upcoming trading week US inflation numbers and trade data from the eurozone and Chinese economies are heavily in focus. The United States economy releases a raft of important inflation data for September and also holds a key longer-data bond auction. The Chinese economy releases key PMI Services, Export and Trade Balance data for the month of September.

We also see eurozone trade data and the release of manufacturing and industrial production figures from the United Kingdom economy and important monthly CPI inflation data from the powerhouse German economy.

Monday 8th October, CNY Chinese PMI Services

The HSBC Chinese Services PMI, released by Markit Economics is an index compiled by monthly questionnaires sent to purchasing executives in over four-hundred different private service sector companies. The panel has been carefully selected to accurately replicate the true structure of the Chinese service sector economy.

• The AUDUSD pair is bearish while trading below the 0.7110 level, key support is found at the 0.7000 and 0.6930 levels.
• If the AUDUSD pair moves above the 0.7110 level, buyers will likely test towards the 0.7180 and 0.7250 resistance levels.

Tuesday 9th October, GBP BRC Retail Sales Monitor

BRC Retail Sales Monitor shows the performance of the United Kingdom retail sector, at a time when Brexit and online shopping are disrupting the UK retail shopping sector. The British Retail Consortium Retail Sales Monitor measures changes in the actual value of retail sales in BRC-member retail outlets across the United Kingdom.

• The GBPUSD pair is only bearish while trading below the 1.3105 level, key resistance is found at the 1.3205 and 1.3350 levels.
• If the GBPUSD pair moves above the 1.3105 level, key support is found at the 1.3045 and 1.2930 levels.

Wednesday 10th October, USD US PPI

The Producer Price Index released by the Bureau of Labor Statistics and the Department of Labor measures changes in the selling prices producers charge for US goods and services and tracks how prices feed through the production process. PPI is valuable as an early indicator of inflation because producers tend to pass on higher costs to consumers as higher retail prices. It also gives an image of how higher prices from raw materials flow toward the final product.

• The USDCAD pair is only bullish while trading above the 1.3123 level, further upside towards the 1.3220 and 1.3310 levels would then seem likely.
• If the USDCAD pair moves below the 1.3110 level, sellers are likely to test towards the 1.2990 and 1.2840 support levels.

Thursday 11th October, USD US CPI Index

The US Consumer Price Index is released by the US Bureau of Labor Statistics and evaluates fluctuations in the cost of living by measuring the changes in prices consumers pay for a set of items. CPI is used as the headline figure for inflation, as inflation reflects a decline in the greenbacks purchasing power. In terms of an overall inflation measurement, the Consumer Price Index is the most obvious way to quantify fluctuations in purchasing power.

• The EURUSD pair is bearish while trading below the 1.1553 level, further losses towards the 1.1463 and 1.1410 support levels still seems possible.
• If the EURUSD pair moves above the 1.1553 level, buyers are likely test towards the 1.1650 and 1.1730 resistance levels.

Friday 12th October, CNY Chinese Trade Balance

The Chinese Trade Balance is released by the General Administration of Customs of the People's Republic of China and shows the difference in value between imported and exported goods and services over the reported period. A positive number indicates that more goods and services were exported than imported into China. When more goods are exported than imported, a trade surplus is created and when imports are greater than exports, a trade deficit is created.

• The USDJPY pair is only bullish while trading above the 113.50 level, further upside towards 115.00 and 116.10 levels remains possible.
• If the USDJPY pair trades below the 113.50 level, sellers are likely to test the 112.80 and 112.10 support levels.