Market Opportunities : Week 28-08-2023 - 01-09-2023

USDCNH: China’s Manufacturing Purchasing Managers' Index (PMI) report for July is an important event for forex markets due August 31. The performance of manufacturing sector of the second largest economy in the world is an important indicator of the state of global economy as China supplies manufactured goods to majority of countries of the world. The Chinese economy is experiencing deflationary pressures as indicated by accelerated drop in foreign direct investment in July. There is a possibility the Manufacturing PMI report may show accelerating contraction in manufacturing activity which will be bullish for USDCNH.

USDIDX: United States Nonfarm Payrolls report on September 7 is the key economic event of the last week of August. The July Nonfarm Payrolls are expected to show US economy added 187 thousand new jobs - in case it adds more than the expected 187 thousand new jobs in the last month of summer - the USDIDX will get a bullish boost.