Article Highlights

  • China’s President Xi: Stock market at phase of self-recovery
  • Chinese Caixin manu PMI down from 47.3 to 47 in Sept, 47.5 expected
  • Chinese Caixin PMI at its lowest level since March 2009
  • Australia’s CB leading index up by 0.3%, -0.3% previous
  • Japanese traders still out on a holiday
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It’s all about damage control, people! On one hand we’ve seen terrible Chinese manufacturing PMI data from Caixin, and other the other hand we’ve got China’s President Xi Jinping assuring that the stock market has reached a phase of self-recovery. The manufacturing index slipped from 47.3 to a six-and-a-half-year low of 47 in September, indicating a faster pace of industry contraction, instead of recovering to the projected 47.5 figure.

Aussie pairs sold off instantly after seeing the dismal figures, even though most forex traders may have already priced in their expectations for the report earlier in the week. Not even the 0.3% rebound in Australia’s CB leading index was able to keep the currency afloat since market watchers focused on the potential gloom and doom that the Chinese economic slowdown could bring upon the Australian economy.

AUD/USD is down 60 pips to .7030 (-0.84%), AUD/JPY fell to a low of 83.96 (-1.15%), AUD/CAD is 63 pips lower at .9343 (-0.67%), and AUD/NZD is down 35 pips to 1.2233 (-0.30%). The Australian currency is also lower against its European forex counterparts, with EUR/AUD up by 147 pips (+0.94%) and GBP/AUD up by 162 pips to 2.1823 (+0.73%).

Japanese traders are still out enjoying their long holiday but will be returning to their desks tomorrow. Yen forex pairs are currently being weighed down by the risk-off environment, with EUR/JPY down 27 pips (-0.20%), GBP/JPY down by 78 pips (-0.43%), and NZD/JPY down by 55 pips to the 75.00 handle (-0.78%).

The PMI day continues with the release of the German, French, and euro zone readings in the upcoming London trading session. France is set to get the ball rolling starting 8:00 am GMT, although euro forex pairs might save their bigger moves for the release of the German data at 8:30 am GMT. If you’re hoping to catch some pips off these moves, you definitely gotta check out Forex Gump’s trading guide for these reports. Don’t forget that ECB Governor Draghi has a speech lined up much later on so y’all better be mindful of proper risk management if you’re leaving any positions open. Stay on your toes!

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!