Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Home Loans for November increased by 0.5% monthly, and Investment Lending for Homes expanded by 1.9% monthly. Forex traders can compare this to Australian Home Loans for October, which surged by 5.6% monthly, and Investment Lending for Homes, which accelerated by 8.3% monthly.
The Chinese CPI for December rose by 0.1% monthly and contracted by 0.3% annualized. Economists predicted an increase of 0.2% and a drop of 0.4%. Forex traders can compare this to the CPI for November, which decreased by 0.5% monthly and 0.5% annualized. The Chinese PPI for December dropped by 2.7% annualized. Economists predicted a contraction of 2.6%. Forex traders can compare this to the Chinese PPI for November, which decreased by 3.0% annualized.
The Chinese Trade Balance for December came in at $75.34B. Economists predicted a figure of $74.75B. Forex traders can compare this to the Chinese Trade Balance for November, reported at $68.39B. Exports for December rose by 2.3% annualized, and Imports increased by 0.2% annualized. Economists predicted a rise of 1.7% and 0.3%. Forex traders can compare this to Exports for November, which expanded by 0.5% annualized, and Imports, which decreased by 0.6%.
Japanese Bank Lending for December increased by 3.1% annualized. Economists predicted a rise of 2.7%. Forex traders can compare this to Japanese Bank Lending for November, which rose 2.8% annualized.
The Preliminary Japanese Current Account Balance for November came in at -¥1,925.6B. Economists predicted a figure of ¥2,385.1B. Forex traders can compare this to the Japanese Current Account Balance for October, reported at ¥2,582.8B.
Foreign Buying of Japanese Bonds for the period ending January 6th came in at ¥542.3B, and Foreigners Buying of Japanese Stocks at ¥296.2B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending December 30th, reported at -¥204.8B, and to Foreigners Buying of Japanese Stocks at -¥337.3B.
The Japanese Eco Watchers Survey Current Index for December came in at 50.7, and the Japanese Eco Watchers Survey Outlook Index at 49.1. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for November, reported at 49.5, and the Japanese Eco Watchers Survey Outlook Index at 49.4.
The forecast for the AUD/JPY is cautiously bearish after this currency pair failed to push through its horizontal resistance area. The Tenkan-sen and the Kijun-sen widended but flatlined. Volatility could rise following a bullish crossover in the Ichimoku Kinko Hyo Cloud, which could reverse due to the lack of upside momentum and a flat Senkou Span B. Traders should also monitor the CCI following its breakdown from extreme overbought territory. This technical indicator has plenty of downside potential. Can bears regain 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 96.850 to 97.450 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 97.250
- Take Profit Zone: 94.950 – 95.350
- Stop Loss Level: 98.000
Should price action for the AUD/JPY breakout above 97.450, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 98.000
- Take Profit Zone: 98.600 – 99.000
- Stop Loss Level: 97.450
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