We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Cable (GBP/USD) remains just off its seven-month high print around 1.3165 as traders start to move to the side lines ahead of next Thursday’s General Election vote. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/CpCh13J9ZH #Brexit https://t.co/PIh6WUqbsK
  • (Weekly Technical Outlook) GBP/USD, EUR/GBP, GBP/JPY, GBP/CAD Outlook as UK Election Looms $GBPUSD $EURGBP $GBPJPY #UKelection2019 - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/07/GBPUSD-EURGBP-GBPJPY-GBPCAD-Outlook-as-UK-Election-Looms.html?CHID=9&QPID=917702 https://t.co/iuILHYczJ7
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/WlEFlluGfZ #tradingstyle https://t.co/TkMtJQKatx
  • By issuing debt denominated in $USD, China is making a long-term bet that it will be cheaper to pay back its loans over time in the US Dollar; it believes the value of the US Dollar will fall. Get your market update from @CVecchioFX here:https://t.co/5GO9UrvO4y https://t.co/xV9urXXf48
  • What are some risk trading management techniques? Find out: https://t.co/RShdlDz9RA #tradingstyle https://t.co/M3ASPIHAep
  • #Dow Jones stages impressive recovery on a firm NFP report. #FTSE 100 eyes UK general election. Get your equities technical analysis from @JMcQueenFX here: https://t.co/o28UcG6N3l https://t.co/SwGAaFCFND
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/f4y1FOOZnM #tradingstyle https://t.co/x5HgYopWc5
  • The USD may rise if the FOMC re-affirms its data-dependent approach and cools 2020 rate cut bets. US retail sales and CPI data may also give the Fed impetus to hold rates. Get your $USD market update from @ZabelinDimitri here: https://t.co/XnDITaDOox https://t.co/A480uVMqF2
  • What tools does the ECB have left to stimulate the Eurozone? Where is the #Euro heading? Find out from Chief Eurozone Economist at Pantheon Macroeconomics Claus Vistesen only on Trading Global Markets Decoded #podcast hosted by @MartinSEssex here:https://t.co/Twr44cZ1GB https://t.co/DXlDH5Cp9e
  • The price of oil extends the advance from the October low as #OPEC and its allies pledge to take additional steps to balance the energy market. Get your crude #oil market update from @DavidJSong here: https://t.co/llGq8yPFH4 #OOTT https://t.co/1OCVOIrK98
Can China Manufacturing PMI Miss Fuel Risk Aversion in Thin Trade?

Can China Manufacturing PMI Miss Fuel Risk Aversion in Thin Trade?

2018-12-31 00:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open – S&P 500, US Dollar, Fed, Asia Stocks, China Manufacturing PMI

  • US Dollar declined as the markets priced out even one Fed rate hike in 2019, S&P 500 swung
  • Low liquidity amidst holiday trade still creates recipe for volatile price action as week begins
  • Asia stocks may trade mixed unless China Manufacturing PMI contraction triggers a selloff

Find out what retail traders’ equities buy and sell decisions say about the coming price trend!

The US Dollar slid against most of its major counterparts on Friday as the markets priced out even just one Fed rate hike in 2019. With that said, stocks still ended the day mixed given low liquidity in holiday trade and with New Year’s still yet to come. The S&P 500 ended the day about 0.12% lower after a mixed session. That marked its only positive week in December given a rocky month for global benchmark stock indexes.

With that said, Wall Street was unable to follow-through after broad gains in European shares after traders seemed to have unwound their shorts. Investors remained jittery given a prolonged US government shutdown and recent dismal domestic consumer confidence. To add to that, pending home sales slid 7.7% y/y in November which was the largest contraction since April 2014.

The Canadian Dollar ended worse, sliding with local government bond yields which reflected fading 2019 BoC rate hike bets. Meanwhile the anti-risk Japanese Yen and Swiss Franc gained against their major counterparts. Amidst falling US government bond yields and the decline in the greenback, gold prices gained as the anti-fiat commodity.

Given the incoming New Year’s holiday and the reduction in liquidity, Asia Pacific markets may trade mixed. As for economic data, we will get December’s Chinese Manufacturing PMI which is on the verge of contraction. Local economic news flow has been tending to underperform, opening the door to an unexpected downside surprise. That may lead to aggressive risk aversion if it fuels more concerns about slowing Chinese economic growth.

NZD/USD Technical Analysis

The New Zealand Dollar sits right in a horizontal range of support between 0.66898 and 0.67141 which are the lows seen from July 2018. I am still holding short NZD/USD and resumption of risk aversion may lead to close under this area. That would open the door to perhaps reaching the 2018 low around 0.64247. You may follow me on twitter @ddubrovkyFX for updates to my setup.

NZD/USD Daily Chart

Can China Manufacturing PMI Miss Fuel Risk Aversion in Thin Trade?

Chart created in TradingView

US Trading Session

Can China Manufacturing PMI Miss Fuel Risk Aversion in Thin Trade?

Asia Pacific Trading Session

Can China Manufacturing PMI Miss Fuel Risk Aversion in Thin Trade?

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.