- Chinese official manufacturing PMI up from 50.1 to 50.2 in May
- China’s official non-manufacturing PMI dipped from 53.4 to 53.2
- Australia’s building approvals slumped 4.4% vs. projected 1.7% decline
- Australian company operating profits up 0.2% as expected in Q1
- Japanese capital spending jumped 7.3% in Q1 vs. estimated 0.1% dip
- U.K. manufacturing PMI to climb from 51.9 to 52.7?
It looks like forex traders are still testing the waters at the start of this brand-new trading month, as most currencies haven’t established a clear direction yet. So far, the U.S. dollar is leading against the euro and the yen but is lagging behind the the comdolls and the pound.
Australia’s reports came in mixed, with the building approvals data showing a worse-than-expected 4.4% slump instead of the estimated 1.7% decline and the company operating profits report printing a 0.2% gain as expected for the first quarter. In China, the official manufacturing PMI ticked up from 50.1 to 50.2 in May while the non-manufacturing PMI dipped from 53.4 to 53.2.
AUD/USD is up 14 pips (+0.18%) and is holding on to the .7650 handle, AUD/JPY is up 15 pips (0.20%) just around the 95.00 mark, and EUR/AUD is down 72 pips (-0.49%) while trying to break below the 1.4300 level.
The lack of progress on a Greek debt deal has continued to weigh on most euro pairs at the start of this week, as the government needs to find enough cash to make its debt payment to the IMF by June 5. EUR/USD is down 37 pips (-0.33%), EUR/JPY is lower by 40 pips (-0.31%), and EUR/GBP is down 20 pips (-0.25%). Any updates on this situation could push the shared currency around since the deadline is fast approaching.
Speaking of the euro, the top economies in the region are also set to print their final PMI readings today and any positive revisions to Germany’s or France’s reports might allow the currency to stay afloat. Also lined up today is the U.K. manufacturing PMI, which is expected to climb from 51.9 to 52.7 and possibly give the pound a boost.
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