Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Home Loans for December plunged 5.6% monthly, and Investment Lending for Homes contracted 1.9% monthly. Forex traders can compare this to Australian Home Loans for November, which rose by 0.3% monthly, and Investment Lending for Homes, which accelerated by 1.9% monthly.
The Australian PPI for the fourth quarter increased by 0.9% quarterly and 4.1% annualized. Forex traders can compare this to the Australian PPI for the third quarter, which rose by 1.8% quarterly and 3.8% annualized.
The US NFP Report for January is predicted to show 187K job additions and an unemployment rate of 3.8%. Forex traders can compare this to the US NFP Report for December, which showed 216K job additions and an unemployment rate of 3.7%. Private Payrolls for January are predicted to show 155K job additions and Manufacturing Payrolls 5K job gains. Forex traders can compare this to Private Payrolls for December, which showed 164K job additions, and Manufacturing Payrolls, which showed 6K job additions. The Average Work Week for January is predicted at 34.3 hours. Forex traders can compare this to the Average Work Week for December, reported at 34.3 hours. Average Hourly Earnings for January are predicted to increase 0.3% monthly and 4.1% annualized. Forex traders can compare this to Average Hourly Earnings for December, which rose 0.4% monthly and 4.1% annualized.
US Factory Orders for December are predicted to rise by 0.3% monthly. Forex traders can compare this to US Factory Orders for November, which increased by 2.6% monthly.
The final US Michigan Consumer Sentiment for January is predicted at 78.8. Forex traders can compare this to US Michigan Consumer Confidence for December, reported at 69.7. Final Current Conditions for January are predicted at 83.3, and Final Expectations are predicted at 75.9. Forex traders can compare this to Current Conditions for December, reported at 73.3, and Expectations, reported at 67.4. Final US Michigan Inflation Expectations for January are predicted at 2.9%, and Final US Michigan 5-year Inflation Expectations at 2.8%. Forex traders can compare this to Final US Michigan Inflation Expectations for December, reported at 3.1%, and Final US Michigan 5-Year Inflation Expectations at 2.9%.
The forecast for the AUD/USD is cautiously bullish after price action corrected into its horizontal support area. The Ichimoku Kinko Hyo Cloud provides longer-term upside momentum with its gradual shift higher. Short-term volatility could increase with this currency pair trading above its flat Tenkan-sen but below its flat Kijun-sen. Traders should also monitor the CCI following its double breakout from extreme oversold territory and above zero. This technical indicator has plenty of upside potential to lead price action higher. Can bulls regain control over the AUD/USD and push this currency pair 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 0.6570 to 0.6620 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6595
- Take Profit Zone: 0.6820 – 0.6870
- Stop Loss Level: 0.6525
Should price action for the AUD/USD breakdown below 0.6570, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6525
- Take Profit Zone: 0.6525 – 0.6595
- Stop Loss Level: 0.6570
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
