Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Employment Change for March came in at 53.0K, and the Unemployment Rate at 3.5%. Economists predicted a figure of 20.0K and 3.6%. Forex traders can compare this to the Australian Employment Change for February, reported at 63.6K, and the Unemployment Rate reported at 3.6%. 72.2K Full-Time Positions were created, and 19.2K Part-Time Positions were lost in March. Forex traders can compare this to the creation of 79.2K Full-Time Positions and the loss of 15.6K Part-Time Positions reported in February. The Labor Force Participation Rate for March came in at 66.7%. Economists predicted a reading of 66.6%. Forex traders can compare this to the Labor Force Participation Rate for February, reported at 66.7%.
Australian Consumer Inflation Expectations for April increased by 4.6% annualized. Forex traders can compare this to Australian Consumer Inflation Expectations for March, which rose 5.0% annualized.
The Chinese Trade Balance for March came in at $88.19B. Economists predicted a figure of $39.20B. Forex traders can compare this to the Chinese Trade Balance for February, reported at $116.88B. Exports for March surged by 14.8% annualized, and Imports decreased by 1.4% annualized. Economists predicted a drop of 7.0% and 5.0%. Forex traders can compare this to Exports for February, which dropped by 6.8% annualized, and Imports by 10.2% annualized.
US Initial Jobless Claims for the week of April 8th are predicted at 232K, and US Continuing Claims for the week of April 1st at 1,814K. Forex traders can compare this to US Initial Jobless Claims for the week of April 1st, reported at 228K, and US Continuing Claims for the week of March 25th at 1,823K.
The US PPI for March is predicted to increase by 0.1% monthly and by 3.0% annualized. Forex traders can compare this to the US PPI for February, which dropped by 0.1% monthly and rose by 4.6% annualized. The US Core PPI for March is predicted to expand by 0.3% monthly and by 3.4% annualized. Forex traders can compare this to the US Core PPI for February, which was flat at 0.0% monthly and increased by 4.4% annualized. The US Core PPI ex Trade for March is predicted to rise by 0.1% monthly and 3.1% annualized. Forex traders can compare this to the US Core PPI ex Trade for February, which expanded by 0.2% monthly, and 4.4% annualized.
US Natural Gas Inventories for the week ending April 7th are predicted at 28B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending March 31st, reported at -23B cubic feet.
The forecast for the AUD/USD remains cautiously bullish, driven by fundamental hopes of a pause in monetary tightening by the US Fed amid a decrease in the headline CPI. Volatility could remain high with the Senkou Span A of the Ichimoku Kinko Hyo Cloud moving lower, while the Kijun-sen and the Tenkan-sen flatlined. Traders should monitor the CCI following its double breakout from extreme oversold territory after recording a higher low and above the zero barrier. This technical indicator has plenty of upside potential and should push price action higher. Can bulls capitalize on recent developments and pressure the AUD/USD into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/USD remain inside the or breakout above the 0.6680 to 0.6740 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6715
- Take Profit Zone: 0.6860 – 0.6920
- Stop Loss Level: 0.6650
Should price action for the AUD/USD breakdown below 0.6680, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6650
- Take Profit Zone: 0.6565 – 0.6590
- Stop Loss Level: 0.6680
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