Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Westpac Leading Index for August increased by 0.5% monthly. Forex traders can compare this to the Australian Westpac Leading Index for July, which increased by 0.1%. Australian HIA New Home Sales for August decreased by 14.4% monthly. Forex traders can compare this to Australian HIA New Home Sales for July, which increased by 64.4% monthly.
The Japanese Trade Balance for August was reported at ¥248.3B. Economists predicted a figure of -¥37.5B. Forex traders can compare this to the Japanese Trade Balance for July, reported at ¥10.9B. The Japanese Adjusted Trade Balance for August was reported at ¥0.35T. Forex traders can compare this to the Japanese Adjusted Trade Balance for July, reported at ¥0.04T. Exports for August decreased by 14.8% annualized, and Imports decreased by 20.8% annualized. Economists predicted a decrease of 16.1% and 18.0%. Forex traders can compare this to Exports for July, which decreased by 19.2% annualized, and to Imports, which decreased by 22.3% annualized.
The forecast for the AUD/JPY remains bearish with uncertainty over the global economic recovery on the rise. Covid-19 infections are trending higher, and Japan reported a plunge in exports and imports for August, adding to concerns of more recessionary pressures. The Tenkan-sen moved below the Kijun-sen, suggesting a sell-off could be next. Price action may pass through its Ichimoku Kinko Hyo Cloud and into its next horizontal support area. Will today’s US FOMC announcement result in a sell-off? 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 76.700 to 77.250 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 77.000
- Take Profit Zone: 74.150 – 74.800
- Stop Loss Level: 77.700
Should price action for the AUD/JPY breakout above 77.250 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 77.700
- Take Profit Zone: 78.150 – 78.450
- Stop Loss Level: 77.250
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