Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Private Sector Credit for April increased by 0.6% monthly and 6.6% annualized. Forex traders can compare this to Australian Private Sector Credit for March, which rose 0.2% monthly and 6.8% annualized. Australian Housing Credit for April increased by 0.3% monthly. Forex traders can compare this to Australian Housing Credit for March, which rose by 0.3% monthly.
Australian Construction Work Done for the first quarter decreased by 1.8% quarterly. Forex traders can compare this to Australian Construction Work Done for the fourth quarter, which rose by 1.0% quarterly.
The Australian Monthly CPI Indicator for April increased by 6.8% annualized. Economists predicted a rise of 6.4%. Forex Traders can compare this to the Australian Monthly CPI Indicator for March, which surged 7.0% annualized.
Reserve Bank of Australia Governor Lowe delivered a speech this morning, noting a potential increase in rent inflation to a three-decade high. He also confirmed that the central bank will no longer use consultants by Big Four accounting firm PwC following the developing scandal centered with the Morrison government. It adds short-term uncertainty to the Australian Dollar, but the medium-term trend favors a recovery against the Swiss Franc, which struggles with rapidly deteriorating economic conditions.
The Chinese Non-Manufacturing PMI for May came in at 54.4, and the Chinese Manufacturing PMI at 48.8. Economists predicted a figure of 54.9 and 51.4. Forex traders can compare this to the Chinese Non-Manufacturing PMI for April, reported at 56.4, and the Chinese Manufacturing PMI, at 49.2. The Chinese Composite PMI for May came in at 52.9. Forex traders can compare this to the Chinese Composite PMI for April, reported at 54.4.
The Swiss ZEW Expectations Survey for May is predicted at -36.8. Forex traders can compare this to the Swiss ZEW Expectations Survey for April, reported at -33.3.
The forecast for the AUD/CHF turned cautiously bullish after this currency pair corrected into its horizontal support area, which previously assisted a bounce higher. Volatility could rise after the Tenkan-sen has moved below the Kijun-sen, but both flatlined near each other. The Ichimoku Kinko Hyo Cloud shows signs of stabilizing. The Senkou Span A drifts higher, and the Senkou Span B shifts lower, narrowing the Ichimoku Kinko Hyo Cloud. Traders should also monitor the CCI after it has recorded a higher low in extreme oversold territory followed by a breakout. A push above the zero barrier would give bulls the upper hand, and this technical inductor has plenty of room to advance. Can bulls overpower bears and pressure the AUD/CHF into its horizontal resistance area? 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 breakout above the 0.5865 to 0.5925 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.5900
- Take Profit Zone: 0.6050 – 0.6120
- Stop Loss Level: 0.5835
Should price action for the AUD/CHF breakdown below 0.5865, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.5835
- Take Profit Zone: 0.5725 – 0.5755
- Stop Loss Level: 0.5865
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
