- Chinese HSBC flash manu PMI for June up from 49.2 to 49.6
- Japan’s flash manu PMI for June dipped from 50.9 to 49.9
- Australia’s HPI up 1.6% in Q1 vs. estimated 2.2% gain and previous 2.0% rise
- Australian CB leading index down 0.3% in April
- German and French manufacturing and services PMIs due
It’s PMI day, forex fellas! China and Japan got the ball rolling by releasing their estimates for the month of June in today’s Asian trading session. China’s HSBC flash manufacturing PMI ticked up from 49.2 to 49.6, reflecting a slower contraction in the industry. Meanwhile, Japan reported a drop in this month’s flash manufacturing PMI from 50.9 to 49.9, indicating a shift from expansion to contraction.
In Australia, house prices recorded a 1.6% gain for the first quarter of the year, weaker compared to the projected 2.2% increase and the previous 2.0% rise. The April CB leading index showed a 0.3% decline, hinting at a bleaker economic outlook over the next few months. AUD/USD is down 20 pips (-0.26%), AUD/JPY is lower by 5 pips (-0.05%), and NZD/USD is down 10 pips (-0.15%) to .6850.
Dollar rallies kicked into high gear when risk aversion popped its head in the markets as the session rolled along. EUR/USD broke below the rising wedge pattern that Big Pippin shared, as the pair is looking at a 65-pip (-0.58%) loss so far. GBP/USD also sold off and is down 46 pips (-0.29%) while USD/JPY climbed 27 pips (+0.22%). The yen was able to advance against the rest of its forex rivals, with EUR/JPY lower by 51 pips (-0.38%) and GBP/JPY down 10 pips (-0.05%).
European currencies seem to be suffering the brunt of the losses, as forex traders are probably coming to terms with the idea that Greece isn’t likely to reach an agreement with its creditors anytime soon. Reports that some Greek banks might run out of cash and be forced to halt operations within the week sparked sparked talks of a Lehman-type crash, not just for the debt-ridden nation, but also for the rest of the continent.
Up ahead, the forex calendar shows that it will be the turn of Germany and France to release their manufacturing and services PMI readings for the current month. Small improvements are eyed for the manufacturing sectors while the services industry could reflect a slight downturn in activity. Overall, the euro region’s flash manufacturing PMI could come in at 52.0 while the flash services PMI could dip from 53.8 to 53.7.
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