Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian CPI for the first quarter increased by 0.6% quarterly and by 1.1% annualized. Economists predicted an increase of 0.9% quarterly and 1.4% annualized. Forex traders can compare this to the Australian CPI for the fourth quarter, which increased by 0.9% quarterly and by 0.9% annualized. The RBA Trimmed Mean CPI for the first quarter increased by 0.3% quarterly and by 1.1% annualized. Economists predicted an increase of 0.5% quarterly and 1.2% annualized. Forex traders can compare this to the RBA Trimmed Mean CPI for the fourth quarter, which increased by 0.4% quarterly and by 1.2% annualized. The RBA Weighted Median CPI for the first quarter increased by 0.4% quarterly and by 1.3% annualized. Economists predicted an increase of 0.5% quarterly and 1.3% annualized. Forex traders can compare this to the RBA Weighted Median CPI for the fourth quarter, which increased by 0.5% quarterly and by 1.4% annualized.
Canadian Retail Sales for February are predicted to increase by 4.0% monthly, and Canadian Core Retail are predicted to increase by 3.7% monthly. Forex traders can compare this to Canadian Retail Sales for January, which decreased by 1.1% monthly, and to Canadian Core Retail Sales, which decreased by 1.2% monthly.
The forecast for the AUD/CAD remains bearish after the Tenkan-sen started to drift lower. A crossover below the flat Kijun-sen should add more selling pressures n this currency. The descending Ichimoku Kinko Hyo Cloud adds to the bearish picture and can guide price action to the downside. The strained relationship between Australia and China adds to fundamental stress. Can bears benefit from rising selling pressure and force the AUD/CAD into its next horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/CAD remain inside the or breakdown below the 0.9570 to 0.9670 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9600
- Take Profit Zone: 0.9250 – 0.9300
- Stop Loss Level: 0.9730
Should price action for the AUD/CAD breakout above 0.9670, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9730
- Take Profit Zone: 0.9830 – 0.9880
- Stop Loss Level: 0.9670
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
