Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Private Sector Credit for March increased 0.4% monthly and 1.0% annualized. Forex traders can compare this to Australian Private Sector Credit for February, which increased 0.2% monthly and 1.6% annualized. Australian Housing Credit for March increased 0.5% monthly. Forex traders can compare this to Australian Housing Credit for February, which increased 0.4% monthly. The Australian PPI for the first quarter increased by 0.4% quarterly and 0.2% annualized. Forex traders can compare this to the Australian PPI for the fourth quarter, which increased by 0.5% quarterly and decreased by 0.1% annualized.
US Personal Income for March is predicted to increase by 20.3% monthly, and Personal Spending is predicted to increase by 4.1% monthly. Forex traders can compare this to Personal Income for February, which decreased by 7.1% monthly, and to Personal Spending, which decreased by 1.0% monthly. The PCE Core Deflator for March is predicted to increase by 0.3% monthly and 1.8% annualized. Forex traders can compare this to the PCE Core Deflator for February, which increased by 0.1% monthly and 1.4% annualized.
The US Employment Cost Index for the first quarter is predicted to increase by 0.7% quarterly. Forex traders can compare this to the US Employment Cost Index for the fourth quarter, which increased by 0.7% quarterly. The US Chicago PMI for April is predicted at 65.3. Forex traders can compare this to the US Chicago PMI for March, reported at 66.3. The final US Michigan Consumer Sentiment for April is predicted at 87.4. Forex traders can compare this to US Michigan Consumer Confidence for March, reported at 86.5. The final Current Conditions for April are predicted at 97.2, and the Final Expectations are predicted at 79.7. Forex traders can compare this to Current Conditions for March, reported at 97.2, and to Expectations, reported at 79.7.
The forecast for the AUD/USD turned bullish after this currency advanced into a strong resistance level. Both currencies remain weak, but the sour relationship between Australia and China results in more downside pressure than the debt-driven policies for the US Dollar. The Kijun-sen and the Tenkan-sen turned sideways, while the Ichimoku Kinko Hyo Cloud extends its minor drift lower. After the CCI moved out of extreme overbought territory, traders should await a second spike before selling this currency pair. Can bulls keep the selling pressure intact and force the AUD/USD into its next horizontal support 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 breakdown below the 0.7745 to 0.7815 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.7770
- Take Profit Zone: 0.7530 – 0.7575
- Stop Loss Level: 0.7850
Should price action for the AUD/USD breakout above 0.7815, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7850
- Take Profit Zone: 0.7930 – 0.7970
- Stop Loss Level: 0.7815
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