Wow, big data out last night...


TUESDAY DATA (Trade reaction): 

• AUS MFG Index down to 43.9
• GER Labour day = closed
• CHI manu PMI up to 53.3 WTE (slightly)
• AUS IR down to 3.75% WTE
• AUS house prices down WTE
• UK PMI Manu 0928
• US ISM manu 1500

NEWS:

• CHI PMI worse than expected but still rising and any thing above 50 is positive.
• AUS IR down to 3.75% unexpectedly and house prices fall. AUS shares rise.
• Asian shares tumble nearly 2% on debt concerns and higher yen.
• Portugal reduces 2013 spending in budget

Initial Thought:  Big day ahead, shorting the AUD and buying Aussie stocks seems obvious after the rate cut. And with Asian stocks dropping buying the Yen seem a good bet too. However this is just my view from looking at the fundamentals only.

Correlation: EURUSD negatively correlated with USDCHF

ID (Emotional Bias/reaction to news): Short the USD (with the exception of against the AUD).
Watch out for: UK PMI at 0928 and US ISM manu 1500
Plan:  Keep close eye on H1 charts as most pairs ranging, if price breaks out of range go with it, if range remains intact trade price back into support or resistance.

Potential Trades: there is no doubt in mind there will be good trades today, but they are not apparent yet. Patience and constant monitoring will be required today.

Personal Notes:
Looking forward to seeing how the day goes should be interesting and fun to watch developments. Will be looking to get one or two trades using the H1 or M15 charts for entry because as they are longer timeframes they offer more certainty. I’m also going to make sure I wait for the close of sessions to ensure I don’t get stop squeezed. Good luck.