During the upcoming  trading week the release of the US Non-farm payrolls job report,  and Private sector jobs report headlines the economic calendar. The August Non-farm payrolls jobs report from the United States economy is expected to show a decrease in the amount of new jobs being created from the previous month. Traders also look to a key interest rate decisions from the Reserve Bank of Australia, at a time when the Australian dollar currency is strengthening, and trading at multi-month highs against the US dollar.

Traders and investors also look to important Manufacturing data from the United States, Chinese, and German economies this week. Financial markets will also be closely observing the monthly jobs report from the Canadian economy, and UK PMI Services data.

Monday 31st August, China Manufacturing PMI

The Chinese Manufacturing Purchasing Managers Index is released by the Chinese Federation of Logistics and Purchasing, and is an economic indicator that measures the activity level of manufacturing. A reading above 50.0 indicates expansion in the sector, while a reading below 50.0 indicates contraction. The Manufacturing PMI is based on a survey of purchasing managers in the manufacturing sector.

  • The USDJPY pair is only bullish while trading above the 106.40 level, further upside towards the 106.70 and 107.00 resistance levels seems possible.
  • If the USDJPY pair trades below the 106.40 level, sellers are likely to test towards the 104.80 and 104.00 support levels.

Tuesday 1st September, RBA Interest Rate Decision

The Reserve Bank of Australia Rate Decision is the market interest rate on overnight funds, with the RBA standing as the central monetary authority for the Australian economy. The Reserve Bank of Australia is widely expected to keep interest rates on hold at this meeting, following recent rate cuts. RBA policymakers are also expected to strike a dovish tone towards the economy and monetary policy.

  • The AUDUSD pair is only bearish while trading below the 0.7200 level, key support is found at the 0.7140 and 0.6950 levels.
  • If the AUDUSD pair moves above the 0.7200 level, buyers may test towards the 0.7390 and 0.7450 levels.

Wednesday 2nd September, ADP Private Sector Report

The ADP private sector jobs report is released by the Automatic Data Processing Inc, and measures the change in the number of employed people in the private sector of the United States economy. A rise of this figure stimulates economic growth, and is usually seen as being bullish for the US dollar currency. A weaker-than-expected number may cause traders to sell the IS dollar currency.

  • The USDCHF pair is only bearish while trading below the 0.9220 level, further downside towards the 0.8970 and 0.9700 support levels seems possible.
  • If the USDCHF pair trades above the 0.9220 level, buyers are likely test towards the 0.9400 and 0.9480 resistance levels.

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Thursday 3rd September, US Continuing Jobless Claims

US Continuing Jobless Claims is released by the United States Department of Labor measure the number of individuals who are unemployed and are currently receiving unemployment benefits. It presents the strength in the labor market. A rise in this indicator has negative implications for consumer spending which discourage economic growth. Due to the ongoing COVID-19 pandemic the Continuing Jobless Claims number can be quite volatile on a weekly basis.

  • The EURUSD pair is only bullish while trading above the 1.1780 level, key resistance is found at the 1.1960 and 1.2000 levels.
  • If the EURUSD pair trades below the 1.1780 level, sellers may test towards the 1.1730 and 1.1660 levels.

Friday 4th September, US Nonfarm Payrolls Job Report

The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. The Non-farm payrolls job report 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 USDCAD pair is bearish while trading below the 1.3300 level, further losses towards the 1.3050 and 1.2980 levels remains possible.
  • If the USDCAD pair trades above the 1.3300 level, buyers are likely to test the 1.3360 and 1.3410 resistance levels.

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