Intro To Fundamental Analysis Part 4

NonFarm Payroll

ISM Manufacturing PMI – Pay attention to the employment component of the ISM manufacturing PMI this will give you an indication of what the NFP will be like.

ADP NFP Report – This tells you what the private job sector is like so if this number is good say above 160K then we can expect a good NFP.

Unemployment Claims (4 weeks) – keep track of the unemployment claims each week to have an idea of the unemployment rate.

Challenger Job Cut Report – This gives you a little idea of what the unemployment rate will be like.

Personal Spending – Good personal spending data also indicates good employment data as more personal spending indicates higher employment hence more consumers in the market spending.

Risk Appetite

Risk Appetite – This is when the economy is doing good and persons are more willing to take risk.

Risk Aversion – This is when the economy is not doing so well and as a result persons are not willing to take as much risk.

When there is risk appetite some traders will tend to invest in currencies with higher interest rates eg AUD. This is because their central bank pays more interest. So you might see very good news for the USD and as a result the AUDUSD rises.