- Australian economy grew by 0.5% in Q2 2014
- RBA Stevens: Further interest rate cuts are unlikely
- Nikkei up by 0.38% for the trading day
- Chinese official non-manufacturing PMI up from 54.2 to 54.4
- Chinese HSBC services PMI climbed from 50.0 to 54.1
- Spanish and Italian services PMI due
- U.K. services PMI to print upside surprise?
Surf’s up for the Aussie! The Australian currency got a fresh boost in today’s Asian forex trading session when the country’s GDP showed 0.5% growth in Q2, stronger than the estimated 0.4% economic expansion. Apart from that, RBA Governor Stevens mentioned in his speech that further rate cuts are unlikely, as the current accommodative policy is enough to support mining activity.
AUD/USD broke to the upside from its consolidation around .9275 then reached a high of .9305 in the past few hours while AUD/JPY spiked to a high of 97.82. EUR/AUD found resistance at the 1.4150 minor psychological level while GBP/AUD hit a low of 1.7707.
Data from China also added support for the Aussie, as services PMIs from both the government and HSBC indicated stronger expansion. The official non-manufacturing PMI improved from 54.2 to 54.4 in August while the HSBC services PMI climbed from 50.0 to 54.1.
For today’s London trading session, it will be the turn of Spain, Italy and the U.K. to release their own services PMIs. The U.K. services PMI, which is projected to dip from 59.1 to 58.6, could spur volatility for pound pairs, as the country’s services sector contributes a huge chunk to overall economic growth.
Also due today is the euro zone retail sales figure, which might show a 0.3% decline in spending for July. Weaker than expected data from the euro zone could fuel easing speculations in tomorrow’s ECB rate statement, which might drive euro pairs lower.
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