Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Trade Balance for July came in at A$8,0.39M. Economists predicted a figure of A$10.000M. Forex traders can compare this to the Australian Trade Balance for June, reported at A$10,268M. Exports for July decreased by 2.0% monthly, and imports rose by 3.0%. Forex traders can compare this to exports for June, which contracted by 3.1%, and imports by 3.3%.
Final Australian Building Approvals for July plunged by 8.1% monthly and 10.6% annualized. Forex traders can compare this to Australian Building Approvals for June, which dropped by 7.9% monthly and 18.0% annualized. Final Private House Approvals for July rose by 0.3% monthly. Forex traders can compare this to Private House Approvals for June, which decreased by 1.0% monthly.
The Chinese Trade Balance for August came in at $68.36B. Economists predicted a figure of $73.90B. Forex traders can compare this to the Chinese Trade Balance for July, reported at $80.60B. Exports for August plunged by 8.8% annualized and Imports by 7.3% annualized. Economists predicted a drop of 9.2% and 9.0%. Forex traders can compare this to Exports for July, which contracted by 14.5% annualized, and Imports by 12.4% annualized.
The Swiss Unemployment Rate for August came in at 2.0%, and the Seasonally Adjusted Unemployment Rate at 2.1%. Economists predicted a rate of 2.0% and 2.1%. Forex traders can compare this to the Swiss Unemployment Rate for July, reported at 1.9%, and the Seasonally Adjusted Unemployment Rate, reported at 2.1%.
Swiss Foreign Currency Reserves for August came in at CHF694.3B. Forex traders can compare this to Swiss Foreign Currency Reserves for July, reported at CHF698.1B.
The forecast for the AUD/CHF is cautiously bullish after this currency pair completed a breakout above its horizontal support area following a 550+ pips correction covering the previous 11+ weeks. Volatility could remain high with the descending Ichimoku Kinko Hyo Cloud providing downside pressure, but the Senkou Span B shows signs of entering a flat trend, diminishing bearish momentum. The bullish crossover of the upward-moving Tenkan-sen above the descending Kijun-sen requires more time for confirmation. Traders should monitor the CCI after a positive divergence in extreme oversold territory resulted in a massive advance into extreme overbought conditions, followed by a breakdown. This technical indicator remains above zero and has more upside potential. Can bulls maintain control over the AUD/CHF and push price action 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 0.5670 to 0.5715 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.5690
- Take Profit Zone: 0.5885 – 0.5945
- Stop Loss Level: 0.5620
Should price action for the AUD/CHF breakdown below 0.5670, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.5620
- Take Profit Zone: 0.5500 – 0.5555
- Stop Loss Level: 0.5670
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