For today’s Forex Trading Tips, we will look into another day of further opportunities as we delve into five (5) data based high impact news events.
2 August, AtoZForex – The main focus for today will be on the AUD, NZD and GBP currencies. Today’s forex trading tips present another day of opportunities for forex traders, as we will provide you the insights upon five key data releases that revolves around the mentioned currency pairs. Furthermore, we will look into EURUSD and GBPUSD.
High impact news -1st August 2016
#1 AUSTRALIA -@ 2:30am BST
Building Approvals – Previous: -5.2%; Forecast: 0.9%; Currency affected: AUD
Forex Trading Tips – The market expects better results than the previous month, and expect AUD to appreciate, however, this initial bullish rally may be a short lived with the Trade Balance figures that show a less than forecast.
#2 AUSTRALIA -@ 2:30am BST
Trade Balance – Previous: -2.22B; Forecast: -2.00B; Currency affected: AUD
Forex Trading Tips – The market expects better results than the previous month. A positive number indicates that more goods and services were exported than imported. A positive figure is good for the AUD. I am expecting little impact as it is a duplicate of the Trade balance data released last week.
#3 NEW ZEALAND -@ 4:00am BST
Inflation Expectations – Previous: 1.6%; Forecast: tbc; Currency affected: NZD
Forex Trading Tips – This data is derived from the survey of about 100 consumers which asks “where they expect prices to be two years in the future ” If actual figure is greater than that expected by the market, it will mean NZD will appreciate.
#4 AUSTRALIA -@ 5:30am BST
Cash Rate – Previous: 1.75%; Forecast: 1.50%; Currency affected: AUD
Forex Trading Tips – Last week, second quarter CPI data was released, showing a much more palatable +0.4%, in-line with previous expectations. Even with a high inflation reading, expectations still forecast a likely RBA interest rate cut to a new record low of 1.50% and we could see AUD depreciate further.
#5 AUSTRALIA -@ 5:30am BST
RBA Rate Statement – No data news event; Currency affected: AUD
Forex Trading Tips – Plan for a possible hawkish stance despite any reduction in the Cash Rate to 1.50%. We may see a whipsaw of this currency pair. Real impact will be seen in the early sessions of the European & UK markets.
#6 UK -@ 9:30pm BST
Construction PMI – Previous: 46.0; Forecast: 44.2; Currency affected: GBP
Forex Trading Tips – Earlier this week on Monday we saw poor Manufacturing PMI data out of UK. The market expectation is that UK Construction PMI to decline. Anything above that forecast will indicate further bullish direction for the GBP. Also, a figure above 50 indicates that the industry is expanding. Bias is on the SELL side.
#7 NEW ZEALAND -@ Tentative BST
GDT (Global Dairy Trade) Price Index – Previous: 0%; Forecast: Tentative; Currency affected: NZD
Forex Trading Tips – This is a leading indicator of the nation’s trade balance with other countries because rising commodity prices boost export income. Expecting better results compared to the July 19th 2016 figures. Bias is on the Buy side.
Currency Pairs – Daily Forex Trading Tips
#8 AUDUSD trading tip
The AUD has depreciated last week and bias is continued downside.
Forex Trading Tips – We see the price broke below the 50hr and 200hr moving averages. A break below the 0.7520 level we will see continued bearish action. Look for Short opportunity at /near the 0.7595 level
#9 EURUSD trading tip
Trading the Euro is going to be tricky this week. We saw EUR depreciate and then rally. It is range bound between 1.1710 and 1.0460 levels.
Forex Trading Tips – On intraday if price breaks below 1.1150, look for shorts. Look for LONG opportunities above 1.1120
#10 GBPUSD trading tip
This week we will see GBP under pressure. Although the price is ranging, long term bias is on the sell side. Expect bearish price action on less than expected Construction data later this morning
Forex Trading Tips – Expecting continued bearish move this week. Look for shorts between 1.4255 level and if price breaks below 1.30 level expect continued bearish price action.