Today, ADP Employment data will be in the limelight, as well as the ISM Non-Manufacturing PMI. Important figures are also expected in New Zealand and in Australia. Will the dollar continue falling today?
Yesterday, good data from the US didn’t help the greenback. The opposite happened – strong US data caused risk appetite to grow and the dollar weakened before the Pending Home Sales release, and also after it.
As the day broke, Nationwide Consumer Confidence was published in Britain, and it was bad – only 40 points, lower than last month and lower than expectations. Later in the UK: Services PMI which is expected to stay a little above 40. GBP/USD is now at 1.4407.
In Australia, monthly Building Approvals fell by 2.9% when they were expected to rise at a similar level. This big negative surprise was balanced by a good surprise in Retail Sales that increased by 3.8%, much better than early predictions and than last month’s data. AUD/USD now trades at 0.6474.
Europe also provides Final Services PMI in addition to the monthly Retail Sales. Big changes aren’t expected there. EUR/USD is mostly affected by risk appetite…EUR/USD is now at 1.3031.
At 13:15, ADP Non-Farm Employment Change will be published. This figure should always be taken with a grain of salt, since it tends to make big jumps, and isn’t necessarily a good indicator of the Non Farm Payrolls on Friday. Current expectations are at -528,000.
Later in the US, ISM Non-Manufacturing PMI is predicted to go lower, below 40. This figure will be interesting after Monday’s similar figure.
And closing the day, New Zealand will provide more important indicators: Employment Change which is expected to fall by 0.7% and the Unemployment Rate, expected to rise from 4.2% to 4.6%.
NZD/USD made some serious retractions. After falling below the psychological line of 0.50, the kiwi climbed back upwards, and touched the previous support line of 0.5150. It proved as a strong support line. NZD/USD is now back under 0.51.
That’s it! Happy Forex Trading!