Australian consumer confidence rebounded slightly as the holiday shopping season started and the RBA kept interest rates unchanged in a move widely expected by markets. The AUDCHF extended its advance an is now testing the strength of its horizontal resistance level. Do bulls have enough momentum to force a breakout or will bears reject this currency pair? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Switzerland experienced another month of deflationary pressures as evident in this morning’s CPI report. Yesterday showed that the global manufacturing sector is sliding deeper into a recession and the safe-haven Swiss Franc is favored to benefit from this. Are the bears preparing for a major move in the AUDCHF or can the bulls push higher from current levels? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian ANZ Roy Morgan Weekly Consumer Confidence Index: The Australian ANZ Roy Morgan Weekly Consumer Confidence Index for the week of December 1st was reported at 108.1. Forex traders can compare this to the Australian ANZ Roy Morgan Weekly Consumer Confidence Index for the week of November 24th which was reported at 106.8.
- Australian Current Account Balance: The Australian Current Account Balance for the third-quarter was reported at A$7.9B. Economists predicted a figure of A$6.1B. Forex traders can compare this to the Australian Current Account Balance for the second-quarter which was reported at A$4.7B. Australian Net Exports of GDP for the third-quarter increased by 0.2% quarterly. Economists predicted an increase of 0.2% quarterly. Forex traders can compare this to Australian Net Exports of GDP for the second-quarter which increased by 0.6% quarterly.
- Australian RBA Interest Rate Decision: The Australian RBA left interest rates unchanged at 0.75%. Economists predicted no change in interest rates. Forex traders can compare this to the previous Australian RBA Interest Rate Decision where interest rates were left unchanged at 0.75%.
Here is the key factor to keep in mind today for Swiss Franc trades:
- Swiss CPI: The Swiss CPI for November decreased by 0.1% monthly and by 0.1% annualized. Economists predicted a decrease of 0.1% monthly and 0.1% annualized. Forex traders can compare this to the Swiss CPI for October which decreased by 0.2% monthly and by 0.3% annualized. The Swiss Core CPI for November increased by 0.4% annualized. Economists predicted an increase of 0.2%. Forex traders can compare this to the Swiss Core CPI for October which increased by 0.2% annualized. The Swiss EU Harmonized CPI for November decreased by 0.4% monthly and by 0.3% annualized. Economists predicted a decrease of 0.3% and 0.3%. Forex traders can compare this to the Swiss EU Harmonized CPI for October which decreased by 0.2% monthly and by 0.3% annualized.
Should price action for the AUDCHF remain inside the or breakdown below the 0.6755 to 0.6820 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6790
- Take Profit Zone: 0.6585 – 0.6650
- Stop Loss Level: 0.6840
Should price action for the AUDCHF breakout above 0.6820 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6840
- Take Profit Zone: 0.6885 – 0.6950
- Stop Loss Level: 0.6820
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Forex trading for beginners often poses a tremendous challenge, take a look at how PaxForex ensures that you are on the right track from your first trade!
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