Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Trade Balance for November came in at A$11,437M. Economists predicted a figure of A$7.500M. Forex traders can compare this to the Australian Trade Balance for October, reported at A$7,660M. Exports for November rose by 1.7% monthly, and imports plunged by 7.9%. Forex traders can compare this to exports for October, which increased by 0.8%, and imports, which decreased by 2.9%.
US Initial Jobless Claims for the week of January 6th are predicted at 210K, and US Continuing Claims for the week of December 30th at 1,871K. Forex traders can compare this to US Initial Jobless Claims for the week of December 30th, reported at 202K, and US Continuing Claims for the week of December 23rd at 1,855K.
The US CPI for December is predicted to increase by 0.2% monthly and by 3.2% annualized. Forex traders can compare this to the US CPI for November, which rose by 0.1% monthly and by 3.1% annualized. The US Core CPI for December is predicted to expand by 0.3% monthly and by 3.8% annualized. Forex traders can compare this to the US Core CPI for November, which rose by 0.3% monthly and 4.0% annualized. The US Dollar could experience a volatility boost in either direction following the release of the CPI report.
The US Monthly Budget Statement for December is predicted at -$65.3B. Forex traders can compare this to the US Monthly Budget Statement for November, reported at -$314.0B.
US Natural Gas Inventories for the week ending January 5th are predicted at -119B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending December 29th, reported at -14B cubic feet.
The forecast for the AUD/USD turned cautiously bullish after this currency pair corrected into its horizontal support area before stabilizing. Price action now trades above its flat Kijun-sen but below its descending Tenkan-sen, where a false bearish crossover could follow. Adding to the upside pressure is the ascending Ichimoku Kinko Hyo Cloud, with the Senkou Span A and Senkou Span B moving higher. Traders should also monitor the CCI after grazing extreme oversold territory before reversing. This technical indicator has plenty of upside potential, and a breakout above zero could trigger the next leg up. Can bulls regain control over the AUD/USD and pressure price action into its horizontal resistance area and a fresh 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 0.6695 to 0.6740 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6720
- Take Profit Zone: 0.6820 – 0.6870
- Stop Loss Level: 0.6640
Should price action for the AUD/USD breakdown below 0.6695, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6640
- Take Profit Zone: 0.6525 – 0.6595
- Stop Loss Level: 0.6695
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