On Friday we will get a look at the Chinese manufacturing PMI for October which is expected to come in flat at 51.1 which would point to a continued expansion in the Chinese manufacturing sector. There are some fears that the figure will come in lower than expected and point towards a contraction which would be a huge negative and could send the Australian Dollar as well as New Zealand Dollar lower.
The Japanese Yen could continue to strengthen as traders flock towards the carry trade there as well as somewhat of a safe haven, especially in Asia. A contraction in the Chinese PMI will also result in a heavy sell-off in global equities so keep an eye out for it.
I am looking forward to this report as if a contraction does show I think we are in for a rather wild sell-off in global equities and it should impact the forex market as well. I do think we may see a much worse than expected number and a spike in volatility.
I have my shorts in for the AUDUSD since it poked above 0.9700 and I actually entered some longs on the NZDUSD at 0.8200, got my SL in so I will close it for profits either way. Same for my AUDUSD, either will will correct more or my SL will get hit and I am out for profits.