Following the meeting between US President Trump and Chinese President Xi this weekend, both leaders agreed to a truce and more trade talks. Forex traders had little time to digest the announcement as Chinese PMI data came in weaker than expected as the global economic slowdown continues. This was further confirmed by Australian Manufacturing PMI data which came in mixed. The AUDJPY paused its rally, but will this be temporary before the advance extends with a breakout or are bears preparing for a price action reversal? Today’s fundamental analysis will take a look at the possibilities.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Chinese PMI: The Chinese Non-Manufacturing PMI for June was reported at 54.2 and the Chinese Manufacturing PMI at 49.4. Economists predicted a figure of 54.2 and of 49.5 Forex traders can compare this to the Chinese Non-Manufacturing PMI for May which was reported at 54.3 and to the Chinese Manufacturing PMI which was reported at 49.4. The Chinese Composite PMI for June was reported at 53.0. Forex traders can compare this to the Chinese Composite PMI for May which was reported at 53.3.
- Australian AiG Performance of Manufacturing Index: The Australian AiG Performance of Manufacturing Index for June was reported at 49.4. Forex traders can compare this to the Australian AiG Performance of Manufacturing Index for May which was reported at 52.7.
- Australian CBA Manufacturing PMI: The Final Australian CBA Manufacturing PMI for June was reported at 52.0. Economists predicted a figure of 51.7. Forex traders can compare this to the previous Australian CBA Manufacturing PMI for June which was reported at 51.7.
- Australian CoreLogic House Prices: Australian CoreLogic House Prices for June decreased by 0.1% monthly. Forex traders can compare this to Australian CoreLogic House Prices for May which decreased by 0.4% monthly.
- Australian TD Securities Inflation: Australian TD Securities Inflation for June was reported flat at 0.0% monthly and increased by 1.6% annualized. Forex traders can compare this to Australian TD Securities Inflation for May which was reported flat at 0.0% monthly and which increased by 1.7% annualized.
- Chinese Caixin Manufacturing PMI: The Chinese Caixin Manufacturing PMI for June was reported at 49.4. Economists predicted a figure of 50.1. Forex traders can compare this to the Chinese Caixin Manufacturing PMI for May which was reported at 50.2.
Forex traders stared the new trading week with the key Japanese Tankan Survey for the second-quarter which came in below expectations and showed further stress for Asia’s second biggest economy. Small firms reported a contraction in activity while large firms reported disappointing figures. Japanese consumer confidence slid further and the final Manufacturing PMI for June was revised lower which applied downward pressure on the Japanese Yen. This kept the AUDJPY hovering at resistance, will forex traders attempt a breakout? Log into your forex platform now and follow the PaxForex Daily Fundamental Analysis trading recommendation in order to boost your profits.
Here are the key factors to keep in mind today for Japanese Yen trades:
- Japanese Tankan Survey: The Tankan Large Manufacturers Index for the second-quarter was reported at 7. Economists predicted a figure of 9. Forex traders can compare this to the Tankan Large Manufacturers Index for the first-quarter which was reported at 12. The Tankan Large Manufacturers Outlook for the second-quarter was reported at 7. Economists predicted a figure of 6. Forex traders can compare this to the Tankan Large Manufacturers Outlook for the first-quarter which was reported at 8. The Tankan Large Non-Manufacturers Index for the second-quarter was reported at 23. Economists predicted a figure of 20. Forex traders can compare this to the Tankan Large Non-Manufacturers Index for the first-quarter which was reported at 21. The Tankan Large Non-Manufacturers Outlook for the second-quarter was reported at 17. Economists predicted a figure of 19. Forex traders can compare this to the Tankan Large Non-Manufacturers Outlook for the first-quarter which was reported at 20. The Tankan Small Manufacturers Index for the second-quarter was reported at -1. Economists predicted a figure of 2. Forex traders can compare this to the Tankan Small Manufacturers Index for the first-quarter which was reported at 6. The Tankan Small Manufacturers Outlook for the second-quarter was reported at -5. Economists predicted a figure of -2. Forex traders can compare this to the Tankan Small Manufacturers Outlook for the first-quarter which was reported at -2. The Tankan Small Non-Manufacturers Index for the second-quarter was reported at 10. Economists predicted a figure of 10. Forex traders can compare this to the Tankan Small Non-Manufacturers Index for the first-quarter which was reported at 12. The Tankan Small Non-Manufacturers Outlook for the second-quarter was reported at 3. Economists predicted a figure of 6. Forex traders can compare this to the Tankan Small Non-Manufacturers Outlook for the first-quarter which was reported at 5. The Japanese Tankan Large All Industry Capex Index for the second-quarter increased by 7.4% quarterly. Economists predicted an increase of 8.1% quarterly. Forex traders can compare this to the Japanese Tankan Large All Industry Capex Index for the first-quarter which increased by 1.2% quarterly.
- Japanese Loans & Discounts: Japanese Loans & Discounts for May increased by 3.24% annualized. Forex traders can compare this to Japanese Loans & Discounts for April which increased by 3.78%.
- Japanese Nikkei Manufacturing PMI: The Final Japanese Nikkei Manufacturing PMI for June was reported at 49.3. Forex traders can compare this to the previous Japanese Nikkei Manufacturing PMI June which was reported at 49.5.
- Japanese Vehicle Sales: Japanese Vehicle Sales for June decreased by 0.9% annualized. Forex traders can compare this to Japanese Vehicle Sales for May which increased by 4.8% annualized.
- Japanese Consumer Confidence: Japanese Consumer Confidence for June was reported at 38.7. Economists predicted a figure of 39.2. Forex traders can compare this to Japanese Consumer Confidence for May which was reported at 39.4.
Should price action for the AUDJPY remain inside the or breakout above the 75.600 to 76.250 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 75.750
- Take Profit Zone: 78.000– 78.900
- Stop Loss Level: 75.300
Should price action for the AUDJPY breakdown below 75.600 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 75.200
- Take Profit Zone: 73.400 – 73.900
- Stop Loss Level: 75.750
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