Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Australian AiG Services Index for November came in at 45.6. Forex traders can compare this to the Australian AiG Services Index for October, reported at 47.7.

Australian Building Approvals for October plunged by 6.0% monthly, and Private House Approvals decreased by 2.2% monthly. Economists predicted a drop of 6.0%and 2.2%. Forex traders can compare this to Australian Building Approvals for September, which collapsed by 8.1% monthly, and Private House Approvals by 7.8% monthly.

The Australian GDP for the third quarter expanded by 0.6% quarterly and 5.9% annualized. Economists predicted an increase of 0.7% and 6.2% annualized. Forex traders can compare this to the Australian GDP for the second quarter, which rose 0.9% quarterly and 3.2% annualized. Capital Expenditure for the third quarter decreased by 0.2% quarterly, the Chain Price Index rose 0.2% quarterly, and Final Consumption expanded by 0.8% quarterly. Forex traders can compare this to Capital Expenditure for the second quarter, which increased 0.5% quarterly, the Chain Price Index, which surged 4.3% quarterly, and Final Consumption, which expanded by 1.2% quarterly.

The Chinese Trade Balance for November came in at $69.84B. Economists predicted a figure of $79.05B. Forex traders can compare this to the Chinese Trade Balance for October, reported at $85.15B. Exports for November plunged by 8.7% annualized and Imports by 10.6% annualized. Economists predicted a drop of 3.6% and 5.0%. Forex traders can compare this to Exports for October, which decreased by 0.3% annualized, and Imports by 0.7% annualized.

Preliminary US Non-Farm Productivity for the third quarter is predicted to increase by 0.6% quarterly and Unit Labor Costs by 3.1% quarterly. Forex traders can compare this to US Non-Farm Productivity for the second quarter, which rose 0.3% quarterly, and Unit Labor Costs, which increased 3.5% quarterly.

US Crude Oil Inventories for the week ending December 2nd are predicted at -3.305M. Traders can compare this to US Crude Oil Inventories for the week ending November 25th, reported at -12.580M. US Gasoline Inventories for the week ending December 2nd are predicted at 2.707M, and US Distillate Stocks at 2.208M. Traders can compare this to US Gasoline Inventories for the week ending November 25th, reported at 2.769M, and US Distillate Stocks at 3.547M.

The forecast for the AUD/USD remains bullish after this currency pair paused its 500+ pips rally. Volatility may increase as bulls and bears fight over control with the Kijun-sen and the Tenkan-sen flat. Adding to the bullish outlook is the expanding Ichimoku Kinko Hyo Cloud following a bullish crossover. Traders should monitor the CCI after retreating from extreme overbought territory and moving below zero. It may bounce higher once testing the -100 level if it records a higher low. Can bulls extend the rally in the AUD/USD and power it into its horizontal resistance area and a new multi-month high? 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 0.6640 to 0.6745 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 0.6680
• Take Profit Zone: 0.6980 – 0.7070
• Stop Loss Level: 0.6590

Should price action for the AUD/USD breakdown below 0.6640, PaxForex the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 0.6590
• Take Profit Zone: 0.6450 – 0.6500
• Stop Loss Level: 0.6640

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