Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Wage Price Index for the second quarter increased by 0.8% quarterly and by 3.6% annualized. Economists predicted a rise of 0.9% and 3.7% annualized. Forex traders can compare this to the Australian Wage Price Index for the first quarter, which rose by 0.8% quarterly and 3.7% annualized.
Chinese Retail Sales for July increased by 2.5% annualized. Economists predicted a rise of 4.5% annualized. Forex traders can compare this to Chinese Retail Sales for June, which surged by 3.1% annualized.
Chinese Industrial Production for July increased by 3.7% annualized. Economists predicted an expansion of 4.4% annualized. Forex traders can compare this to Chinese Industrial Production for June, which rose 4.4% annualized.
Chinese Fixed Assets ex Rural for July expanded by 3.4% annualized. Economists predicted a rise of 3.8% annualized. Forex traders can compare this to Chinese Fixed Assets ex Rural for June, which increased 3.8% annualized.
The Chinese Surveyed Jobless Rate for July came in at 5.3%. Economists predicted 5.3%. Forex traders can compare this to the Chinese Surveyed Jobless Rate for June, reported at 5.2%.
The Canadian CPI for July is predicted to increase by 0.3% monthly and 3.0% annualized. Forex traders can compare this to the Canadian CPI for June, which rose by 0.1% monthly and 2.8% annualized. The Canadian Core CPI for July is predicted to expand by 0.4% monthly and 2.8% annualized. Forex traders can compare this to the Canadian Core CPI for June, which decreased by 0.1% monthly and increased by 3.2% annualized. The Canadian CPI-Median for July is predicted to expand by 3.7% annualized, and the Canadian CPI-Trimmed by 3.4%. Forex traders can compare this to the Canadian CPI-Median for June, which rose by 3.9% annualized, and to the Canadian CPI-Trimmed by 3.7% annualized.
The forecast for the AUD/CAD turned cautiously bullish after this currency pair corrected into its horizontal support area. Volatility could rise after the Kijun-sen and the Tenkan-sen flatlined following a bearish crossover. The Ichimoku Kinko Hyo Cloud narrowed after the Senkou Span A moved below the Senkou Span B, but both entered a sideways trend, with the Ichimoku Kinko Hyo Cloud presenting resistance. Traders should also monitor the CCI after a positive divergence formed in extreme oversold territory. This technical indicator completed a breakout above -100 with plenty of upside potential, and a push above zero could accelerate a move higher. Can bulls regain control over the AUD/CAD and pressure price action into its horizontal resistance 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 breakout above the 0.8730 to 0.8780 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8755
- Take Profit Zone: 0.8870 – 0.8910
- Stop Loss Level: 0.8690
Should price action for the AUD/CAD breakdown below 0.8730, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8690
- Take Profit Zone: 0.8600 – 0.8630
- Stop Loss Level: 0.8730
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