Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Construction Index for January came in at -5.0. Forex traders can compare this to the Australian AiG Construction Index for December, reported at -3.6. The Australian AiG Manufacturing Index for February came in at -6.4. Forex traders can compare this to the Australian AiG Manufacturing Index for January, reported at -17.1.
The Preliminary Australian Manufacturing PMI for February came in at 50.5. Economists predicted a reading of 50.1. Forex traders can compare this to the Australian Manufacturing PMI for January, reported at 50.0.
The Australian CPI for January rose 7.4% annualized. Economists predicted an increase of 8.1%. Forex traders can compare this to the Australian CPI for December, which surged by 8.4% annualized.
The Australian GDP for the fourth quarter expanded by 0.5% quarterly and 2.7% annualized. Economists predicted an increase of 0.8% and 2.7% annualized. Forex traders can compare this to the Australian GDP for the third quarter, which rose 0.7% quarterly and 5.9% annualized. Capital Expenditure for the fourth quarter decreased by 1.4% quarterly, the Chain Price Index rose 0.6% quarterly, and Final Consumption expanded by 0.4% quarterly. Forex traders can compare this to Capital Expenditure for the third quarter, which decreased 0.2% quarterly, the Chain Price Index, which rose 0.2% quarterly, and Final Consumption, which expanded by 0.8% quarterly.
The Chinese Caixin Manufacturing PMI for February came in at 51.6. Economists predicted a figure of 50.2. Forex traders can compare this to the Chinese Caixin Manufacturing PMI for January, reported at 49.2.
The Chinese Non-Manufacturing PMI for February came in at 56.3, and the Chinese Manufacturing PMI at 52.6. Economists predicted a figure of 55.0 and 50.5. Forex traders can compare this to the Chinese Non-Manufacturing PMI for January, reported at 54.4, and the Chinese Manufacturing PMI, at 50.1. The Chinese Composite PMI for February came in at 56.4. Forex traders can compare this to the Chinese Composite PMI for January, reported at 52.9.
Swiss Retail Sales for January are predicted to drop 2.2% annualized. Forex traders can compare this to Swiss Retail Sales for December, which contracted by 2.8% annualized.
The Swiss Procure.ch Manufacturing PMI for February is predicted at 50.4. Forex traders can compare this to the Swiss Procure.ch Manufacturing PMI for January, reported at 49.3.
The forecast for the AUD/CHF remains bearish after this currency pair completed a breakdown below its narrowing Ichimoku Kinko Hyo Cloud. Following a bearish crossover of the Tenkan-sen below the Kijun-sen, which aided the sell-off in price action, both indicators flatlined, suggesting a volatility increase ahead. Traders should also monitor the CCI after it reversed a dip into extreme oversold territory. This technical indicator remains below zero and lacks the momentum for a breakout. A rejection by the zero level could spark another sell-off with lower lows. Can bears regain control over the AUD/CHF and pressure this currency pair into its horizontal support area and fresh 2023 lows? 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 0.6325 to 0.6365 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6350
- Take Profit Zone: 0.6155 – 0.6200
- Stop Loss Level: 0.6410
Should price action for the AUD/CHF breakout above 0.6365, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6410
- Take Profit Zone: 0.6445 – 0.6485
- Stop Loss Level: 0.6365
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