2013-03-03 01:45 GMT (or 02:45 MQ MT5 time) | [CNY - HSBC Final Manufacturing PMI]
if actual > forecast = good for currency (for CNY in our case)
HSBC confirms China manufacturing index at seven-month low
Chinese manufacturing activity contracted in
February at its worst rate in seven months, British banking giant HSBC
said Monday, the latest data indicating trouble in the world's number
Chinese manufacturing activity contracted in February at its worst
rate in seven months, British banking giant HSBC said Monday, the latest
data indicating trouble in the world's number two economy.
said its final purchasing managers' index (PMI) for China, which tracks
manufacturing activity in factories and workshops, fell to 48.5 last
It was a slight increase on the flash PMI of 48.3 the bank
released 11 days ago, but it remained the weakest reading since July
when the figure stood at 47.7, according to the bank's data.
index is a closely watched gauge of the health of the Asian economic
powerhouse. A reading above 50 indicates growth, while anything below
In January, the index showed contraction for the first time in six months to hit 49.5.
2013-03-03 09:30 GMT (or 10:30 MQ MT5 time) | [GBP - Manufacturing PMI]
if actual > forecast = good for currency (for GBP in our case)
British Manufacturing Sector Growth Quickens In February
U.K. manufacturing sector expanded for the eleventh successive month
in February, and to a slightly larger extent than in the prior month,
survey data published by Markit Economics and the Chartered Institute of
Purchasing and Supply (CIPS) revealed Monday.
adjusted manufacturing purchasing managers' index advanced to 56.9 in
February from 56.6 in January, which was revised down from 56.7. PMI
readings above 50 indicate growth in activity, while those below show
contraction. The index has now stayed above the neutral mark for the
eleventh straight month.
2013-03-03 13:30 GMT (or 14:30 MQ MT5 time) | [CAD - RMPI]
if actual > forecast = good for currency (for CAD in our case)
Canadian RMPI rises 2.6% in January
Canada's raw materials price index rose for the second consecutive month in January, official data showed on Monday.
In a report, Statistics Canada said the raw materials purchase price
index increased by a seasonally adjusted 2.6% in January, blowing past
expectations for a 1% gain.
Russian Central Bank Opens Fire With Rate Hike (based on Forbes article)
As expected, geopolitical Russian-Ukrainian tensions are weighing on
market sentiment. However, it's rhetoric that is keeping everything in
modest check for the time being, despite the situation escalating
progressively throughout the weekend.
Behind the scenes, talking is
taking some of the capital markets’ nervous edge off Russian President
Vladimir Putin's "bully boy" tactics thus far. American President Barack
Obama held extended conversations with the Russian leader over the
weekend, whilst also securing commitment from the Group of Seven for a
joint condemnation of Russia’s violation of Ukrainian territory. Putin
obviously needs to defend his actions and has held talks with Europe,
specifically German Chancellor Angela Merkel, to defend his intentions
regarding the troop movements and agreeing to an Organization for
Security and Cooperation-led (OSCE) "fact-finding" mission.
all of this, it's only natural that the USD, CHF, and JPY are in high
demand. Other safe haven flows have given a boost to the bund, U.K.
gilt, and U.S. Treasury futures, as well as gold – however, the appetite
for risk aversion remains cautious for the moment.
USDCAD Technicals (based on dailyfx article)
2013-03-04 00:30 GMT (or 01:30 MQ MT5 time) | [AUD - Current Account]
if actual > forecast = good for currency (for AUD in our case)
Australia Current Account Deficit A$10.1 Billion
Australia saw a seasonally adjusted current account deficit of
A$10.139 billion in the fourth quarter of 2013, the Australian Bureau of
Statistics said on Tuesday.
That missed forecasts for a shortfall
of A$10.0 billion following the upwardly revised A$12.5 billion deficit
in the third quarter (originally a deficit of A$12.7 billion).
The primary income deficit climbed A$536 million or 6 percent to A$9.898 billion.
What is a Fundamental? (based on dailyfx article)
Trade analysis is normally grouped into two categories, Technical and
Fundamental. Normally when developing a trading strategy, traders will
choose one or even a combination of both forms of analysis when
developing a trading plan. While its always important to know and
understand key technical levels, it is also good to know what is
fundamentally driving market price.
What is a Fundamental
So what is a market fundamental? A market fundamental is a piece of
specific data or event that causes money to flow either in or out of an
underlying asset. As a trader we attempt to find the strongest currency
and pair it with a weaker one. This means when trading a fundamental
strategy, we will be looking for a series of data points that makes one
more attractive than the other.
Knowing this, traders should be factoring in things such as employment
data, inflation, interest rates and even political turmoil before buying
a particular currency. If the underlying fundamental data is improving
or getting stronger we have found a candidate currency to buy relative
to another with poor performance.
So now that you are a little more familiar with what a fundamental is,
now we need to find all this data so we can make an educated trading
decision. Every good fundamental trader should have access to an
economic calendar. This is where we can see which data points are being
released from week to week.
Traders should keep an eye on the calendar at all times, as data hits or
misses expectations this will ultimately change our fundamental outlook
on a currency.
Which Events to Track
The final question is which events we should follow. This is a fair
question, because there is a slew of economic data released each week!
To help make things easier, the high importance events have been marked
on the economic calendar as high priority/impact. These are the events
that our normally monitored by policy makers such as central banks and
have the ability to immediately influence market price. While these
events are certainly important, just watching events such as this week’s
employment figures for the US may not give us an overall opinion of the
The key to trading fundamentals is to combine a variety of data points
to then make an educated trading decision. As we continue our study of
fundamentals we will take a look at the main influences on an economy
and how they can mold our trading opinion.
Watch the Market
As a fundamental trader, it is important to know how different events
affect the valuation of a currency. This will allow you to monitor,
track and trade currencies in real time.
Related article : Building an Automatic News Trader
2013-03-04 03:30 GMT (or 04:30 MQ MT5 time) | [AUD - Cash Rate]
RBA Holds Cash Rate At Record Low; Signals Period Of Stability In Policy
Australia's central bank on Tuesday maintained its main cash rate at
a record low for a seventh successive month, and indicated a period of
stability in monetary policy, as inflation pressures remained high.
Reserve Bank of Australia, or RBA, kept the policy interest rate
unchanged at 2.5 percent following its rate-setting meeting. The
decision was in line with economists' expectations.
post-decision statement, Governor Glenn Stevens said that the monetary
policy is appropriately configured to foster sustainable growth in
demand and inflation outcomes consistent with the target.