Uncle Sam is printing PMI reports today!
Will today’s releases bust AUD/USD out of a descending triangle pattern?
Before moving on, ICYMI, yesterday’s watchlist checked out AUD/CHF’s Double Bottom pattern near a range support after China cut its interest rates. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Russia to close Nord Stream 1 taps for three days
AU August manufacturing PMI expansion slows down from 55.7 to 54.5 in August
AU services PMI dips from 50.9 to contractionary 49.6 in August
Japan’s Aug factory activity lower from 52.1 to 51.0 – the slowest pace in 19 monthsFrench economy contracts in August for the first time in a year-and-a-half
Germany’s PMIs still contractionary, services PMI deepens contraction from 49.7 to 48.2
Eurozone business activity down for the second month running as service sector growth grinds to a near-halt
UK private sector moves closer to stagnation in August, inflationary pressures cool slightly
European shares extend selloff on soaring energy prices; recession fears
Bitcoin remains weak due to the strength in the U.S. dollar and spike in energy prices
Upcoming Potential Catalysts on the Forex Economic Calendar:
US Markit manufacturing and services PMIs at 1:45 pm GMT
US new home sales at 2:00 pm GMT
AU CB leading index at 2:30 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: AUD/USD
AUD/USD 1-hour Forex Chart
There are not a lot of top-tier economic reports scheduled today so risk sentiment will likely dominate market themes for another day.
Uncle Sam’s Markit manufacturing and services PMI reports may get extra attention especially after reports from Australia, Japan, Eurozone, and the U.K. generally point to weaker economic activity.Watch out for risk aversion, which could drag AUD/USD from its current support. .6865 is a level to watch because buyers and sellers have been paying attention to the area as early as July.
A bounce from the August support might push AUD/USD to its trend line resistance near the 100 SMA. If AUD breaks above the trend line, then AUD/USD could hit previous areas of interest like .6950 or .7000.
But what if risk aversion does drag AUD/USD lower?
A break below the descending triangle support could push AUD all the way to the .6800, .6760, or even the .6720 previous support levels.
