Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Australian CBA Manufacturing PMI for September came in at 53.5. Economists predicted a figure of 53.9. Forex traders can compare this to the Australian CBA Manufacturing PMI for August reported at 53.8.
Australian TD Securities Inflation for September increased 0.5% monthly. Forex traders can compare this to Australian TD Securities Inflation for August, which decreased 0.5% monthly.
The Tankan Large Manufacturers Index for the third quarter came in at 8, and the Tankan Large Manufacturers Outlook at 9. Economists predicted a figure of 11 and 11. Forex traders can compare this to the Tankan Large Manufacturers Index for the second quarter, reported at 9, and the Tankan Large Manufacturers Outlook at 10. The Tankan Large Non-Manufacturers Index for the third quarter came in at 14, and the Tankan Large Non-Manufacturers Outlook at 11. Economists predicted a figure of 13 and 15. Forex traders can compare this to the Tankan Large Non-Manufacturers Index for the second quarter, reported at 13, and the Tankan Large Non-Manufacturers Outlook at 13. The Tankan Small Manufacturers Index for the third quarter came in at -4, and the Tankan Small Manufacturers Outlook at -5. Economists predicted a figure of -3 and -5. Forex traders can compare this to the Tankan Small Manufacturers Index for the second quarter, reported at -4, and the Tankan Small Manufacturers Outlook at -5. The Tankan Small Non-Manufacturers Index for the third quarter came in at 2, and the Tankan Small Non-Manufacturers Outlook at -3. Economists predicted a figure of -2 and -3. Forex traders can compare this to the Tankan Small Non-Manufacturers Index for the second quarter, reported at -1, and the Tankan Small Non-Manufacturers Outlook at -5. The Japanese Tankan Large All Industry Capex Index for the third quarter increased by 21.5% quarterly, and the Japanese Tankan Small All Industry Capex Index decreased by 1.3% quarterly. Economists predicted a rise of 18.8% and a drop of 1.6%. Forex traders can compare this to the Japanese Tankan Large All Industry Capex Index for the second quarter, which expanded by 18.6% quarterly, and the Japanese Tankan Small All Industry Capex Index, which contracted -by 1.4% quarterly.
The forecast for the AUD/JPY remains bearish as the global risk-off sentiment is likely to extend into the fourth quarter. After the Kijun-sen flatlined, the Tenkan-sen began to drift lower. Adding to the bearish outlook is the Ichimoku Kinko Hyo Cloud, which topped out and entered a sideways trend from where it could start to contract. Traders should monitor the CCI following its breakout above extreme oversold territory, as it could reverse into a lower low. 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 92.900 to 93.700 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 93.400
- Take Profit Zone: 90.500 – 91.400
- Stop Loss Level: 94.250
Should price action for the AUD/JPY breakout above 93.700, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 94.250
- Take Profit Zone: 95.300 – 95.900
- Stop Loss Level: 93.700
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
