In today’s live trading session, we went over the US manufacturing data that was released this morning. We then discussed a possible long setup for AUDJPY.
This morning the Institute for Supply Management published its PMI result which is used as a leading indicator for economic health. The US economy published a result of 56.0 versus a forecast of 54.6. This is a substantial result as it indicates a recovering economy, especially with the unemployment rate decreasing continuously. This result led to the US Dollar retrieving some of its losses that occurred at the start of the week.
Since the release, the markets have calmed down and have started their usual consolidation which will remain until the Japan session. Tomorrow is a big day for the US Dollar and consequently, the majors as the ADP job numbers are set to release at 8:15 AM EST. Therefore, in today’s session, we elected to focus on setups for the minor currency pairs. A setup of particular interest is a long for AUDJPY. We are waiting for price to breakout of its consolidation box, before entering long.
NFP weeks tend to either go in one of two ways, they are either very exciting or very boring until the release. As of right now, it seems like we may get the latter. Not to worry, we will be eyeing the markets later today to get an entry into at least one of the setups covered this week. As always, be safe and trade responsibly!
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