Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Australian Trade Balance for June was reported at A$8,202M. Economists predicted a figure of A$8.800M. Forex traders can compare this to the Australian Trade Balance for May, reported at A$8,025M. Exports for June increased by 3.0% monthly, and imports increased by 1.0%. Forex traders can compare this to exports for May, which decreased by 4.0% and, and to imports, which decreased by 6.0%.

Australian Retail Sales for June increased by 2.7% monthly. Economists predicted an increase of 2.4% monthly. Forex traders can compare this to Australian Retail Sales for May, which increased by 16.9% monthly. Australian Retail Sales, excluding Inflation, for the second quarter decreased by 3.4% quarterly. Economists predicted a decrease of 3.2% quarterly. Forex traders can compare this to Australian Retail Sales, excluding Inflation, for the first quarter, which increased by 0.7% quarterly.

The Australian RBA left interest rates unchanged at 0.25%. Economists predicted no change in interest rates. Forex traders can compare this to the previous Australian RBA Interest Rate Decision, where interest rates were left unchanged at 0.25%. US Factory Orders for June are predicted to increase by 5.0% monthly. Forex traders can compare this to US Factory Orders for May, which increased by 8.0% monthly.

The forecast for the AUD/USD remains bullish, supported by the ascending Ichimoku Kinko Hyo Cloud. Economic data out of Australia was mixed, with domestic demand for imports low. The RBA left interest rates unchanged as expected, and forex traders are now looking forward to US factory data while monitoring the renewed tension between the US and China. Will bulls force more upside as the week unfolds? 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 0.7075 to 0.7155 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 0.7130
• Take Profit Zone: 0.7355 – 0.7395
• Stop Loss Level: 0.7030

Should price action for the AUD/USD breakdown below 0.7075 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 0.7030
• Take Profit Zone: 0.6875 – 0.6920
• Stop Loss Level: 0.7075

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