Global manufacturing and US job data to set the market tone for April
During the upcoming trading week, global manufacturing and jobs data set the market tone as a new month of trading gets underway. This week we see PMI manufacturing data releases from the Japanese, Chinese, UK, eurozone, Canadian and United States economy. The American economy also releases the Nonfarm payrolls job report for the month of March, with most economists looking for the US economy to have created 175,000 new jobs last month.
We also see a key interest rate decision from the Reserve Bank of Australia, with market participants paying close attention to the RBA policy statement as they search for clues to the timing of the next rate change from the central bank.
Monday 1st April, USD United States Retail Sales
US Retail Sales is released by the United States Census Bureau and measures the change in the total value of inflation-adjusted sales at the retail level over a stated time period. This figure represents an indicator of consumer spending inside the United States economy. Higher retail sales figures generally mean stronger consumer spending, which is vital for US GDP and economic growth.
- The USDJPY pair is only bullish while trading above the 111.00 level, further gains towards 111.20 and 111.60 levels would then seems possible.
- If the USDJPY pair trades below the 111.00 level, sellers may test towards the 110.68 and 110.20 support levels.
Tuesday 2nd April, AUD RBA Rate Decision
The Reserve Bank of Australia Rate Decision is the market interest rate on overnight funds, with the RBA standing as the central monetary authority for the Australian economy. The Reserve Bank of Australia is widely expected to leave the nations interest rate unchanged and strike a more dovish stance towards the economy and monetary policy.
- The AUDUSD pair is bullish while trading above the 0.7180 level, key resistance is found at the 0.7240 and 0.7280 levels.
- If the AUDUSD pair moves below the 0.7180 level, sellers may test towards the 0.7000 and 0.6940 levels.
Wednesday 3rd April, GBP UK Services PMI
The United Kingdom Services PMI is released by both the Chartered Institute of Purchasing and Supply and also Markit Economics. The UK Services PMI is a key indicator of the economic situation in the UK services sector which captures an overview of the condition of sales and employment. It is worth noting that the United Kingdom service sector comprises roughly eighty percent of the United Kingdom’s gross domestic product.
- The GBPUSD pair is bearish while trading below the 1.3100 level, key support is found at the 1.2970 and 1.2880 levels.
- If the GBPUSD pair trades above the 1.3100 level, buyers are likely to test towards the 1.3300 and 1.3400 resistance levels.
Thursday 4th April, EUR German Factory Orders
German Factory orders are released by the Deutsche Bundesbank and represent a key economic indicator that includes shipments, inventories, and new and unfilled orders. An increase in factory orders may indicate an expansion in the German economy and could be considered an inflationary factor. While a fall in factory orders may indicate weakness in the German economy, which could lead to less inflationary pressures.
- The EURUSD pair is only bullish while trading above the 1.1290 level, key resistance is found at the 1.1310 and 1.1360 levels.
- If the EURUSD pair moves below the 1.1170 level, sellers are likely to test towards the 1.1130 and 1.1000 support levels.
Friday 5th April, 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 USDCAD pair is only bullish while trading above the 1.3310 level, further upside towards 1.3455 and 1.3670 levels remains possible.
- If the USDCAD pair trades below the 1.3310 level, sellers are likely to test the 1.3220 and 1.3165 support levels.