- Yellen: slack in job market warrants support for some time
- CA GDP grows by 0.50% vs. 0.40% expected
- US Chicago PMI prints at 55.9 vs. 59.5 expected
- AU AIG manufacturing PMI clocks in at 47.9 vs. 48.6 previous
- Chinese manufacturing PMIs on tap
- RBA to keep rates at 2.50%?
The Greenback ended the month on a weak note as traders reacted to a surprisingly weak U.S. manufacturing report. Manufacturing in Chicago fell to its eight-month low, which raised concerns among the market geeks who say that the report signals shifts in the ISM report about 70% of the time.
It also didn’t help the dollar that Janet Yellen turned a bit dovish. In a speech yesterday she cautioned that the slack in the job market warrants “extraordinary support for recovery for some time to come.” As a result, the dollar weakened by an average of 30-50 pips against major counterparts like the euro, pound, yen, and the Aussie.
Will the Asian session traders extend the dollar weakness? A while ago Australia released its AIG manufacturing PMI, which came in a bit weaker than expected. Still, we probably won’t see any big moves until 1:00 am GMT and 1:45 am GMT when China prints its manufacturing PMI and HSBC manufacturing PMI numbers, which are both expected to print a bit weaker than last month).
Then, at 3:30 am GMT the RBA will release its monetary policy statement. Analysts expect the RBA to be more optimistic than last month, but keep an eye out in case they jawbone their currency a bit. Check out Forex Gump’s forex trading guide if you’re planning on trading the RBA’s decision!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!