On February 5, the monthly release of Australia’s Trade Balance report is due, following a long period that consisted of much selling, the forecast for today’s release of the International Trade in Goods report by the Australian Bureau of Statistics does not offer a positive or comprising sense of change.
Traders are reminded that the report measures the difference between imported and exported services and goods. If the report present a positive number, it indicates that Australia’s exports exceeded the amount of imports made throughout the passing month.
Analysts foresee a negative outcome for the report, hence more goods and services were imported rather than exported, with implications to the AUD currency as the forecast is higher than the current and actual figure.
Eurozone PMI Data Drags Euro Downhill
Earlier today, the Eurozone Services Purchasing Manager Index has experienced a drop, despite the promising results that were seen in January, which also marked the index’s highest recoded results since October 2013. Experts speculate that the preparations of the European Central Bank to amplify monetary policy support may have triggered this move. As a result, the Euro had gone through a further fall against the U.S. Dollar.
ISM Report to Clarify USD Future Movement
On February 5, 2014, at 10:00am GMT the Institute of Supply Management (ISM) is due to release the Non-Manufacturing PMI. Coming out of a three month period of bull wave, the Dollar needs this report to generate a meaningful lift in order to sustain its current position.
Experts remind traders why the Purchasing Manager’s Index (PMI) serves as a leading indicator of economic health, as the surveyed purchasing managers, who encompass some of the most critical insight regarding their companies’ view of the economy, are the first influencers to react and/or create market change.
Analysts predict a slight negative impact on the U.S. currency because the expected forecast reflects a minor increase in comparison to the actual figures.