Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Australian Markit Services PMI for September was reported at 45.5 and the Final Australian Markit Composite PMI at 46.5. Forex traders can compare this to the Australian Markit Services PMI for August, reported at 42.9, and the Final Australian Markit Composite PMI reported at 43.3.
The Australian AiG Construction Index for September was reported at 53.3. Forex traders can compare this to the Australian AiG Construction Index for August, reported at 38.4. Australian ANZ Job Advertisements for September decreased 2.8% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for August, which decreased 2.7% monthly.
The Australian Trade Balance for August was reported at A$15,077M. Economists predicted a figure of A$10.300M. Forex traders can compare this to the Australian Trade Balance for July, reported at A$12,117M. Exports for August increased 4.0% monthly, and imports decreased 1.0%. Forex traders can compare this to exports for July, which increased 4.9%, and imports which increased 3.6%.
Australian Retail Sales for August decreased 1.7% monthly. Economists predicted a decrease of 1.7% monthly. Forex traders can compare this to Australian Retail Sales for July, which decreased 2.7% monthly. The Australian RBA left interest rates unchanged at 0.10%. Economists predicted no change in interest rates. Forex traders can compare this to the previous Australian RBA Interest Rate Decision, where interest rates were unchanged at 0.10%.
The Canadian Trade Balance for August is predicted at C$0.43B. Forex traders can compare this to the Canadian Trade Balance for July, reported at C$0.78B.
The forecast for the AUD/CAD turned bullish after the Kijun-sen stabilized, resulting in a decrease in selling pressure. After the CCI accelerated out of extreme oversold territory, it added to upside momentum. The Tenkan-sen resumes its descend, and the Ichimoku Kinko Hyo Cloud shows temporary weakness after the Senkou Span A crossed below the Senkou Span B. Bearish pressures should fade over the following few trading sessions, driven by positive fundamental developments. Can bulls regain complete control over the AUD/CAD and force price action into its horizontal resistance area?
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Should price action for the AUD/CAD remain inside the or breakout above the 0.9140 to 0.9200 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9170
- Take Profit Zone: 0.9345 – 0.9375
- Stop Loss Level: 0.9100
Should price action for the AUD/CAD breakdown below 0.9140, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9100
- Take Profit Zone: 0.9000 – 0.9025
- Stop Loss Level: 0.9260
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