September 1, 2021

Daily Asia-London Sessions Watchlist: GBP/AUD

 Taking a look at GBP/AUD for potential short-term setups as volatility may pick up nicely for traders with manufacturing PMI updates coming from Australia, as well as housing price updates from the U.K.

Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at a swing setup on AUD/USD to play risk sentiment, so be sure to check that out to see if there is still a potential play!

Intermarket Update:

Equity Markets Bond Yields Commodities & Crypto

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Fresh Market Headlines & Economic Data:

Soaring home prices shattered another record in June, S&P Case-Shiller says

Chicago Business Barometer – Fell to 66.8 in August

Canadian economy shrank 1.1% in Q2, July GDP seen down 0.4%

German unemployment falls further in August as recovery continues

ECB should discuss cutting crisis aid next week, Holzmann says

Strong 2Q GDP confirmed for Italy

Euro area inflation may justify end to ECB crisis mode, says Knot

UK households post rare net mortgage repayment in July

Upcoming Potential Catalysts on the Economic Calendar

API Crude Oil inventory change at 8:30 pm GMT

Australia Ai Group Manufacturing Index at 10:30 pm GMT

Australia Markit Manufacturing PMI at 11:00 pm GMT

Japan Capital Spending at 11:50 pm GMT

Japan Manufacturing PMI at 12:30 am GMT (Sept. 1)

Australia GDP at 1:30 am GMT (Sept. 1)

China Manufacturing PMI at 1:45 am GMT (Sept. 1)

Germany Retail Sales at 6:00 am GMT (Sept. 1)

U.K. Nationwide Housing Prices at 6:00 am GMT (Sept. 1)

Euro area Manufacturing PMI at 8:00 am GMT (Sept. 1)

Euro area Unemployment Rate at 9:00 am GMT (Sept. 1)

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: GBP/AUD

Volatility in GBP/AUD may pick up very soon as Australia hits Aussie traders with both business sentiment updates, as well as the quarterly GDP read. Expectations are that we could see disappointing reads thanks to a worsening pandemic situation in Australia over recent weeks, which raises the odds of a weak session for the Aussie coming up.

That makes the retest of the previous swing low to watch on GBP/AUD for buying support, as it could draw in both short-term technical buyers and fundamental traders to punt around the 1.8800 major psychological level.

Of course, if those data points surprise the markets with positive read from Australia, the 1.8800 handle could possibly break in in the upcoming Asia session, putting us on alert for a potential short setup if the market can sustain below that level.

For swing traders, the support break is definitely one to watch for a longer-term short position if Australia does give fundamental reasons to be bullish on the Aussie, as well as any bounces up to the 1.8850 level (falling ‘highs’ pattern) or 1.8900 level (broken support now resistance?).

A retest there would likely draw even technical traders to potentially play the recent down trend, especially with a head-and-shoulders pattern starting to form on the daily timeframe that could draw in longer-term technical players short if the should breaks.