{"id":159056,"date":"2019-11-04T10:05:57","date_gmt":"2019-11-04T15:05:57","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=159056"},"modified":"2019-11-04T09:07:41","modified_gmt":"2019-11-04T14:07:41","slug":"usd-falls-as-ism-manufacturing-in-contraction","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/11\/usd-falls-as-ism-manufacturing-in-contraction\/","title":{"rendered":"USD Falls As ISM Manufacturing In Contraction"},"content":{"rendered":"
November 4, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

The USD lost favor as the economic data on Friday saw a packed day.<\/p>\n

The ISM manufacturing PMI for October came in at 48.3, missing estimates of 49.0. This marks the third month of contraction in the manufacturing sector.<\/p>\n

The payrolls report was also mixed. The economy added 128k jobs, slightly better\u00a0than estimates.<\/a>\u00a0September\u2019s payrolls were revised upwards to 180k. But the unemployment rate ticked up to 3.6% on an increase in the participation rate. Wage growth slowed to a pace of 0.2% on the month.<\/p>\n

Euro Gains on the Back of a Weaker USD<\/strong><\/h2>\n

The euro logged gains as the US dollar fell. The currency pair, although a bit volatile, was trading near the previously established highs. Economic data from the eurozone was sparse.<\/p>\n

This left most of the heavy lifting to the US data. A mixed bag of reports kept the USD subdued as a result.<\/p>

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EURUSD Could Retest Resistance at 1.1177<\/strong><\/h3>\n

The currency pair recovered from the sell-off earlier this week and posted a strong rebound. This pushed the prices close to the resistance level of 1.1177.<\/p>\n

Previous attempts to test this resistance level saw the EURUSD falling short before reversing. If the current momentum prevails, the EURUSD could hopefully test this resistance level more firmly.<\/p>\n

\"\"<\/a><\/p>\n

Oil Jumps as Better Chinese Data<\/strong><\/h2>\n

The declines in oil prices stalled after Friday\u2019s data from China. The latest figures for October saw a modest recovery in China\u2019s manufacturing sector.<\/p>\n

The Caixin manufacturing PMI<\/a>\u00a0rose to 51.7, beating estimates of 51.0 and up from 51.4. Furthermore, Friday\u2019s oil rig count also saw an increase, adding to the bullish sentiment in oil.<\/p>\n

WTI Crude Oil Could Test 57.6 Resistance<\/strong><\/h3>\n

The current rebound in oil prices comes as price tested the support area of 54.71 \u2013 54.42. The reversal comes as this level previously held as resistance.<\/p>\n

Therefore, the upside bias prevails. The upper resistance level at 57.6 \u2013 57.9 will be the next target. But oil prices will need to break past this level to maintain the bullish momentum.<\/p>\n

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Gold Rises on the Back of Weak US Data<\/strong><\/h2>\n

The precious metal did not make any major gains but closed on Friday with some moderate gains. The gains come on the back of weak economic data from the US.<\/p>\n

It also now puts the Fed\u2019s policy choice in question. The central bank said that it would not cut rates further. But the markets remain skeptical about this.<\/p>\n

XAUUSD Consolidations at Resistance<\/strong><\/h3>\n

Friday\u2019s price action saw XAUUSD closing back at the resistance area of 1511. There was a modest recovery above this level towards the closing hours. Price action needs to follow through from here to confirm further upside.<\/p>\n

The next main resistance is at 1534 which could be tested if the bullish momentum can prevail.<\/p>\n

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By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex The USD lost favor as the economic data on Friday saw a packed day. The ISM manufacturing PMI for October came in at 48.3, missing estimates of 49.0. This marks the third month of contraction in the manufacturing sector. The payrolls report was also mixed. The economy added 128k jobs, slightly better\u00a0than estimates.\u00a0September\u2019s […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-159056","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/159056","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=159056"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/159056\/revisions"}],"predecessor-version":[{"id":159077,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/159056\/revisions\/159077"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=159056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=159056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=159056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}