Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Household Spending for June rose by 0.9% monthly and dropped by 4.2% annualized. Economists predicted a rise of 0.3% and a contraction of 4.1%. Forex traders can compare this to Japanese Household Spending for May, which decreased by 1.1% monthly and 4.0% annualized.
Japanese Average Cash Earnings for June increased by 2.3% annualized and Japanese Overtime Pay by 0.3% annualized. Forex traders can compare this to Japanese Average Cash Earnings for May, which increased by 2.9% annualized, and Japanese Overtime Pay, which expanded by 0.5%. The Overall Wage Income for Employees for June rose by 2.3% annualized. Economists predicted an increase of 1.6%. Forex traders can compare this to the Overall Wage Income for Employees for May, which rose by 2.9% annualized.
Japanese Bank Lending for July increased by 2.9% annualized. Economists predicted a rise of 3.1%. Forex traders can compare this to Japanese Bank Lending for June, which rose 3.1% annualized.
The Preliminary Japanese Current Account Balance for June came in at ¥1.509T, and the Preliminary Japanese Adjusted Current Account Balance at ¥2.346T. Economists predicted a reading of ¥1.395T and ¥2.240T. Forex traders can compare this to the Japanese Current Account Balance for May, reported at ¥1.862T, and the Japanese Adjusted Current Account Balance at ¥1.700T.
The Japanese Eco Watchers Survey Current Index for July came in at 54.4, and the Japanese Eco Watchers Survey Outlook Index at 54.1. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for June, reported at 53.6, and the Japanese Eco Watchers Survey Outlook Index at 52.8.
Australian Westpac Consumer Confidence for August decreased 0.4% monthly at 81.0. Forex traders can compare this to Australian Westpac Consumer Confidence for July, which increased by 2.7% monthly to 81.3.
Final Australian Building Approvals for June plunged by 7.7% monthly and 18.0% annualized. Forex traders can compare this to Australian Building Approvals for May, which dropped by 20.5% monthly and 9.8% annualized. Final Private House Approvals for June decreased by 1.3% monthly. Forex traders can compare this to Private House Approvals for May, which rose by 0.8% monthly.
Australian NAB Business Conditions for July came in at 10, and Australian NAB Business Confidence at 2. Economists predicted a reading of 8 and -1. Forex traders can compare this to NAB Business Conditions for June, reported at 10, and Australian NAB Business Confidence at -1.
The Chinese Trade Balance for July came in at $80.60B. Economists predicted a figure of $70.60B. Forex traders can compare this to the Chinese Trade Balance for June, reported at $70.62B. Exports for July plunged by 14.5% annualized and Imports by 12.4% annualized. Economists predicted a drop of 12.5% and 5.0%. Forex traders can compare this to Exports for June, which contracted by 12.4% annualized, and Imports by 6.8% annualized.
The forecast for the AUD/JPY remains bearish after this currency pair corrected into its contracting Ichimoku Kinko Hyo Cloud. The Kijun-sen and the Tenkan-sen flatlined, suggesting choppy trading ahead. Traders should monitor the CCI following its breakout from extreme oversold territory. A momentum loss in this technical indicator, which has plenty of downside potential, could result in a continuation of the correction. Can bears maintain control over the AUD/JPY and force 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/JPY remain inside the or breakdown below the 93.300 to 93.950 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 93.600
- Take Profit Zone: 89.800 – 90.750
- Stop Loss Level: 94.300
Should price action for the AUD/JPY breakout above 93.950, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 94.300
- Take Profit Zone: 95.200 – 95.800
- Stop Loss Level: 93.950
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