Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Performance of Manufacturing Index for July was reported at 53.5. Forex traders can compare this to the Australian AiG Performance of Manufacturing Index for June, reported at 51.5. Australian TD Securities Inflation for July increased by 0.9% monthly. Forex traders can compare this to Australian TD Securities Inflation for June, which increased by 0.6% monthly. Australian ANZ Job Advertisements for July increased by 16.7% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for June, which increased by 41.4% monthly.
The Swiss CPI for July decreased by 0.2% monthly and by 0.9% annualized. Economists predicted a decrease of 0.4% and 1.1% annualized. Forex traders can compare this to the Swiss CPI for June, which was reported flat at 0.0% monthly, and which decreased by 1.3% annualized. The Swiss manufacturing PMI for July is predicted at 51.0. Forex traders can compare this to the Swiss Manufacturing PMI for June, reported at 41.9.
The forecast for the AUD/CHF remains bearish after it entered its Ichimoku Kinko Hyo Cloud. The Australian AiG Manufacturing Index expanded in July, but ANZ Job Advertisements are slowing. Inflationary pressures remain soft in Australia and Switzerland, but with the global economy continuing to struggle from demand destruction related to the Covid-19 pandemic, this currency pair carries a bearish bias. Will the sell-off accelerate as more economic data will be released throughout the week? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/CHF remain inside the or breakdown below the 0.6500 to 0.6550 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6530
- Take Profit Zone: 0.6220 – 0.6265
- Stop Loss Level: 0.6600
Should price action for the AUD/CHF breakout above 0.6550 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6600
- Take Profit Zone: 0.6710 – 0.6740
- Stop Loss Level: 0.6550
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