Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Westpac Consumer Confidence for January rose 5.0% monthly to 84.3. Forex traders can compare this to Australian Westpac Consumer Confidence for December, which increased 3.0% monthly to 80.3.
The Chinese GDP for the fourth quarter was flat at 0.0% quarterly and expanded by 2.9% annualized. Economists predicted a decrease of 0.8% quarterly and a rise of 1.8% annualized. Forex traders can compare this to the Chinese GDP for the third quarter, which rose by 3.9% quarterly and 3.9% annualized. The Chinese GDP for 2023 year-to-date increased by 3.0%. Forex traders can compare this to the Chinese GDP for 2022 year-to-date, which rose by 3.0%.
Chinese Industrial Production for December increased by 1.3% annualized. Economists predicted an expansion of 0.2% annualized. Forex traders can compare this to Chinese Industrial Production for November, which rose 2.2% annualized.
Chinese Retail Sales for December decreased by 1.8% annualized. Economists predicted a plunge of 8.6% annualized. Forex traders can compare this to Chinese Retail Sales for November, which dropped 5.9% annualized.
Chinese Fixed Assets ex Rural for December expanded 5.1% annualized. Economists predicted a rise of 5.0% annualized. Forex traders can compare this to Chinese Fixed Assets ex Rural for November, which increased by 5.3% annualized.
The Chinese Surveyed Jobless Rate for December came in at 5.5%. Economists predicted 6.0%. Forex traders can compare this to the Chinese Surveyed Jobless Rate for November, reported at 5.7%.
Canadian Housing Starts for December are predicted at 257.5K. Forex traders can compare this to Canadian Housing Starts for November, which were reported at 264.2K.
The Canadian CPI for December is predicted to decrease by 0.5% monthly and rise by 6.4% annualized. Forex traders can compare this to the Canadian CPI for November, which increased by 0.1% monthly and 6.8% annualized.
The forecast for the AUD/CAD turned bearish after this currency pair began losing bullish momentum inside its horizontal resistance area. The flat Kijun-sen and Tenkan-sen confirm the absence of short-term upside pressure. Volatility could increase as bulls and bears wrestle for directional control, and the Ichimoku Kinko Hyo Cloud flattens out. Traders should monitor the CCI in extreme overbought territory after a minor negative divergence has formed. A breakdown below 100 could give bears the upper hand, and a move below zero may initiate heavy selling. Can bears overpower bulls and regain control of price action to force the AUD/CAD into its 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 0.9300 to 0.9370 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9340
- Take Profit Zone: 0.9040 – 0.9120
- Stop Loss Level: 0.9425
Should price action for the AUD/CAD breakout above 0.9370, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9425
- Take Profit Zone: 0.9515 – 0.9575
- Stop Loss Level: 0.9370
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