Market Opportunities : Week 25-09-2023 - 29-09-2023

USDCNH: China’s Manufacturing Purchasing Managers' Index (PMI) report for September is an important event for forex markets due September 29. 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 September. There is a possibility the Manufacturing PMI report may show accelerating contraction in manufacturing activity which will be bullish for USDCNH.

USDIDX: United States Personal Consumption Expenditure Index (PCE) report on September 29 is the key economic event of September 25-29 week. Investors will be watching closely to see whether the Federal Reserve’s preferred inflation gauge continues to slow down or not. In case the core PCE rises from the previous reading of 0.2% over month this may give some reason for the Federal Reserve to implement another rate hike this year – this will be bullish for USDIDX.