Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Westpac Consumer Confidence for October rose 6.7% monthly. Forex traders can compare this to Australian Westpac Consumer Confidence for September, which decreased by 0.5% monthly.
Australian ANZ Job Advertisements for September rose 1.6% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for August, which dropped 1.8% monthly.
Australian NAB Business Conditions for September came in at 7, and Australian NAB Business Confidence was at -2. Forex traders can compare this to NAB Business Conditions for August, reported at 3, and Australian NAB Business Confidence at -5.
Japanese household spending for August rose by 2.0% monthly and dropped by 1.9% annualized. Economists predicted a rise of 0.5% and a drop of 2.6%. Forex traders can compare this to Japanese household spending for July, which contracted by 1.7% monthly and increased by 0.1% annualized.
Japanese Overtime Pay for August increased by 2.6% annualized, and Japanese Overall Wage Income for Employees rose by 3.0% annualized. Economists predicted a contraction of 2.0% and an expansion of 3.0%. Forex traders can compare this to Japanese Overtime Pay for July, which decreased by 0.2% annualized, and Japanese Overall Wage Income for Employees, which rose by 3.4% annualized.
The Preliminary Japanese Current Account Balance for August came in at ¥3.804T, and the Preliminary Japanese Adjusted Current Account Balance at ¥3.020T. Economists predicted a reading of ¥2.921T and ¥2.430T. Forex traders can compare this to the Japanese Current Account Balance for July, reported at ¥3.193T, and the Japanese Adjusted Current Account Balance at ¥2.800T.
The Japanese Eco Watchers Survey Current Index for September came in at 47.8. Economists predicted a figure of 49.3. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for August, reported at 49.0.
The forecast for the AUD/JPY is bearish after breaking down into its downward-shifting, narrowing Ichimoku Kinko Hyo Cloud, where the Senkou Span A moves higher and the Senkou Span B moves lower. The Tenkan-sen and the Kijun-sen have flatlined, suggesting more short-term volatility ahead. Traders should also monitor the CCI after a negative divergence in extreme overbought territory followed by a breakdown. This technical indicator has plenty of downside potential to lead this currency pair lower, and a move below zero could trigger the next sell-off. 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 98.800 to 99.750 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 99.400
- Take Profit Zone: 94.600 – 95.950
- Stop Loss Level: 100.200
Should price action for the AUD/JPY break out above 99.750, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 100.200
- Take Profit Zone: 100.900 – 101.400
- Stop Loss Level: 99.750
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