The Australian dollar started the week unchanged after relatively weak economic data from China. In a report yesterday, China Logistics said that the country’s manufacturing PMI declined from 51.9 to 51.3 in December. The non-manufacturing and the composite PMI declined to 52.4 and 52.9, respectively. And today, a private survey found that the manufacturing PMI declined from 53 to 53.5. This performance was mostly because of the new coronavirus outbreak in Hebei province that led to a lockdown. On a positive note, the Australian manufacturing PMI rose from 55 to 57.2.
The price of silver bounced back today after the metal became a target by the Wall Street Bets Reddit users. During the weekend, many users said that they were acquiring a substantial amount of silver bars leading to higher demand. The same is true with Ripple, the embattled cryptocurrency that is being investigated by the SEC. Later today, investors will focus on the so-called meme stocks like Nokia, GameStop, AMC, and Blackberry that have become popular among day traders.
The economic calendar will be quite busy today as traders digest key data from around the world. Today being the first trading day of the month, Markit will publish global manufacturing PMI data. The most notable figures will be from the European Union, Germany, the United States, and the UK. The Bank of England will publish the latest mortgage lending numbers while the Eurostat will release the bloc’s unemployment data. Other numbers scheduled for later today are the Swiss unemployment rate data and the ISM manufacturing numbers.
The AUD/USD pair was little changed today after mixed economic data from Australia and China. It is trading at 0.7640, which is slightly above last week’s low of 0.7600. On the four-hour chart, it is also slightly below the important support at 0.7650 and the 25-day and 15-day moving averages. Further, the pair is below the descending trendline that connects the highest peaks in January. Therefore, the pair will likely continue falling as bears aim for the next support at 0.7580.
The EUR/USD is little changed today ahead of the important EU and US PMI numbers. It is trading at 1.2127, which is in the same range as Thursday and Friday. It is also below last week’s high of 1.2190. On the four-hour chart, the price seems to be forming a bearish flag pattern after the substantial drop in January. Therefore, this month, the pair will likely break out lower.
The GBP/USD pair rose today ahead of the UK PMI and mortgage data. On the four-hour chart, the price is slightly below the important resistance level of 1.3758. It is also between the ascending channel and above the 25-day and 25-day moving averages. Therefore, the pair will likely test last month’s high of 1.3758.