Australian consumer confidence decreased slightly, but home loans and investment lending increased. The Australian Dollar came under pressure after the release of RBA minutes, putting an interest rate cut on the table for February. The AUDUSD corrected into the top range of a support area, what impact will US data have on this currency pair? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Yesterday’s US PMI data showed an increase in the services sector, but the US Dollar was unable to advance in the data. The AUDUSD hovers at resistance, and forex traders will get housing data as well as industrial and manufacturing production data today. How will this currency pair react after the release of US economic data? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian ANZ Roy Morgan Weekly Consumer Confidence Index: The Australian ANZ Roy Morgan Weekly Consumer Confidence Index for the week of December 15th was reported at 108.0. Forex traders can compare this to the Australian ANZ Roy Morgan Weekly Consumer Confidence Index for the week of December 8th, which was reported at 109.0.
- Australian Home Loans and Investment Lending: Australian Home Loans for October increased by 2.0% monthly. Forex traders can compare this to Australian Home Loans for September, which decreased by 0.4% monthly. Australian Investment Lending for October increased by 1.4% monthly and the Owner-Occupier Loan Value increased by 2.2% monthly. Forex traders can compare this to Australian Investment Lending for September, which decreased by 3.9% monthly and to Owner-Occupier Loan Value, which increased by 1.0% monthly.
Here are the key factors to keep in mind today for US Dollar trades:
- US Housing Starts and Building Permits: US Housing Starts for November are predicted to increase by 2.0% monthly to 1,340K starts and Building Permits are predicted to decrease by 3.8% monthly to 1,405K permits. Forex traders can compare this to US Housing Starts for October, which increased by 3.8% monthly to 1,314K starts and to Building Permits, which increased by 5.0% monthly to 1,461K permits.
- US Industrial Production and Manufacturing Production: US Industrial Production for November is predicted to increase by 0.8% monthly and Manufacturing Production is predicted to increase by 0.8% monthly. Forex traders can compare this to US Industrial Production for October, which decreased by 0.8% monthly and to Manufacturing Production which decreased by 0.6% monthly. Capacity Utilization for November is predicted at 77.4%. Forex traders can compare this to Capacity Utilization for October, which was reported at 76.7%.
- US JOLTS Job Openings: US JOLTS Job Openings for October a predicted at 7.018M. Forex traders can compare this to US JOLTS Job Openings for September, which were reported at 7.024M.
Should price action for the AUDUSD remain inside the or breakout above the 0.6835 to 0.6870 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6850
- Take Profit Zone: 0.7065 – 0.7125
- Stop Loss Level: 0.6800
Should price action for the AUDUSD breakdown below 0.6835 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6800
- Take Profit Zone: 0.6670 – 0.6725
- Stop Loss Level: 0.6835
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