Manufacturing and jobs data headline the economic calendar
Manufacturing and jobs
During the upcoming trading week, traders and investors look to the release of global PMI manufacturing data and the December Nonfarm Payroll job report from the United States economy. Federal Reserve Chair Jerome Powell is also set to deliver his first major speech of 2019 this week, at a time when the Federal Reserve Chair is coming under increasing pressure from US President Donald Trump.
We see Purchase Managers Index manufacturing data for December coming from the Chinese, United Kingdom, United States, and eurozone economies. The world’s largest economy will release the Nonfarm Payrolls Job report later this week, with most economists expecting that the US Nonfarm Payrolls job report will show that 178,000 new jobs were created during the month of December, while the official US Unemployment rate is expected to hold steady at 3.7 per cent.
The US economy will also release the all-important ISM Manufacturing survey, while the Chinese and United Kingdom economy release key Purchase Managers Index Services data this week.
Monday 31st December, CNY Chinese manufacturing PMI
The Chinese Manufacturing Purchasing Managers Index is released by the Chinese Federation of Logistics and Purchasing. China’s PMI and is an economic indicator that measures the activity level of purchasing managers in the manufacturing sector each month. This December Chinese Manufacturing PMI is expected to come in slightly better than the previous month’s 50.0 headline reading.
- The AUDUSD pair is bearish while trading below the 0.7080 level, further downside towards the 0.6990 and 0.6880 levels seems likely.
- If the AUDUSD pair trades above the 0.7080 level, buyers may test towards the 0.7150 and 0.7190 resistance levels.
Tuesday 1st January, New Year’s Day
Financial markets and Bank’s will close on Tuesday in observance of New Year’s Day.
Wednesday 2nd January, GBP UK manufacturing PMI
The United Kingdom Manufacturing PMI is expected to show a 52.5 reading for the month of December, which is slightly down from the November monthly reading of 53.1. The United Kingdom Manufacturing PMI is based on a survey of UK purchasing managers in the manufacturing sector. Respondents are surveyed for their views on a wide range of business conditions, including employment, new orders, prices and inventories.
- The GBPUSD pair is only bullish while trading above the 1.2730 level, key resistance above is found at the 1.2800 and 1.2840 levels.
- If the GBPUSD pair trades below the 1.2730 level, sellers will likely test towards the 1.2660 and 1.2600 support levels.
Thursday 3rd January, USD US ADP jobs report
The US ADP Employment Change is calculated by the Automatic Data Processing and is a measure of the change in the number of people employed in the US private jobs sector. Generally speaking, a rise in this indicator has a positive implication for US consumer spending and a stimulative effect on overall US economic growth.
- The EURUSD pair is bullish while trading above the 1.1430 level, further upside towards the 1.1500 and 1.1550 resistance levels seems possible.
- If the EURUSD pair moves below the 1.1430 level, sellers may test towards the 1.1360 and 1.1300 support levels.
Friday 4th January, USD US NFP jobs report
The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. Non-farm payrolls is the most carefully observed indicator in the employment situation inside the United States. It is considered the most inclusive calculation of job creation, which causes the Nonfarm Payrolls Job report to become highly significant to market participants, due to the great importance of labour in the United States economy.
- The USDJPY pair is only bullish while trading above the 111.30 level, further upside towards 111.80 and 112.50 levels would then seem possible.
- If the USDJPY pair trades below the 111.00 level, sellers are increasingly likely to test the 110.00 and 109.55 support levels.