Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian ANZ Job Advertisements for September decreased by 0.1% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for August, which increased 1.7% monthly.
Australian Building Approvals for August increased by 7.0% monthly and dropped by 6.7% annualized. Economists predicted a rise of 2.5% and a contraction of 6.4%. Forex traders can compare this to Australian Building Approvals for July, which plunged 7.4% monthly and 7.0% annualized. Australian Private House Approvals for August expanded by 5.8% monthly. Forex traders can compare this to Australian Private House Approvals for July, which rose by 0.4% monthly.
Australian Home Loans for August increased by 2.6% monthly, and Investment Lending for Homes by 1.6% monthly. Forex traders can compare this to Australian Home Loans for July, which contracted by 1.9% monthly, and Investment Lending for Homes by 0.3% monthly.
The Reserve Bank of Australia kept interest rates unchanged at 4.10%, matching economists expectations. Forex traders can compare this to the previous Reserve Bank of Australia's interest rate decision, where it kept its monetary policy rate unchanged at 4.10%. It marked the third consecutive meeting where the Australian central bank opted for no change in its benchmark interest rate. The RBA left future interest rate increases on the table as it maintains a hawkish pause. Headline inflationary pressures remain active, with the rise in energy prices posing a threat to ongoing upward pressure as the economy slows.
Australian Commodity Prices for September plunged 22.0% annualized. Forex traders can compare this to Australian Commodity Prices for August, which dropped 22.9.
The Swiss CPI for September is predicted flat at 0.0% monthly and to increase by 1.8% annualized. Forex traders can compare this to the Swiss CPI for August, which rose by 0.2% monthly and 1.6% annualized.
The forecast for the AUD/CHF remains bearish after this currency pair broke down below its bullish price channel. Adding to downside momentum is the descending Ichimoku Kinko Hyo cloud, which also suggests a potential rise in volatility as it has begun to narrow. The flat Kijun-sen and Tenkan-sen confirm a likely stand-ff between bulls and bears. Traders should also monitor the CCI following its double breakdown from extreme overbought territory and below zero. This technical indicator has plenty of downside potential and can lead this currency pair lower. Will bears maintain control over the AUD/CHF and pressure price action into its horizontal support 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 breakdown below the 0.5785 to 0.5825 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.5810
- Take Profit Zone: 0.5605 – 0.5645
- Stop Loss Level: 0.5850
Should price action for the AUD/CHF breakout above 0.5825, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.5850
- Take Profit Zone: 0.5885 – 0.5925
- Stop Loss Level: 0.5825
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