Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Trade Balance for November came in at A$13,201M. Economists predicted a figure of A$10.500M. Forex traders can compare this to the Australian Trade Balance for October, reported at A$12,217M. Exports for November decreased by 0.4% monthly, and imports by 1.5%. Forex traders can compare this to exports for October, which dropped by 1.2%, and imports by 2.0%.
The Chinese PPI for December decreased by 0.7% annualized, and the Chinese CPI increased by 1.8% annualized. Economists predicted a contraction of 0.1% and an expansion of 1.8%. Forex traders can compare this to the Chinese PPI for November, which dropped by 1.3% annualized, and the Chinese CPI, which rose 1.6% annualized.
US Initial Jobless Claims for the week of January 7th are predicted at 215K, and US Continuing Claims for the week of December 31st are predicted at 1,705K. Forex traders can compare this to US Initial Jobless Claims for the week of December 31st, reported at 204K, and US Continuing Claims for the week of December 24th reported at 1,694K.
The US CPI for December is predicted at 0.0% monthly and at an increase of 6.5% annualized. Forex traders can compare this to the US CPI for November, which rose by 0.1% monthly and 7.1% annualized. The US Core CPI for December is predicted to expand by 0.3% monthly and 5.7% annualized. Forex traders can compare this to the US Core CPI for November, which rose by 0.2% monthly and 6.0% annualized.
The US Monthly Budget Statement for December is predicted at -$70.0B. Forex traders can compare this to the US Monthly Budget Statement for November, reported at -$249.0B.
US Quarterly Grains Stocks for the fourth quarter for wheat are predicted at 1.344B, corn at 11.153B, and soy at 3.132B. Forex traders can compare this to US Quarterly Grains Stocks for the second quarter for wheat, reported at 1.776B, corn at 1.377B, and soy at 0.274B.
The forecast for the AUD/USD turned bearish after this currency pair reached the lower band of its horizontal resistance area, from where bullish momentum began fading. The flat Kijun-sen and Tenkan-sen confirm the lack of short-term upside pressure, but volatility could increase with the Ichimoku Kinko Hyo Cloud swinging moderately higher. Traders should monitor the CCI after it recorded a lower high in extreme overbought territory and a negative divergence has formed. A breakdown below 100 could trigger an increase in selling pressure. Can bears overpower bulls and force the AUD/USD into its 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 0.6860 to 0.6950 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Long Position @ 0.6920
- Take Profit Zone: 0.6630 – 0.6685
- Stop Loss Level: 0.7000
Should price action for the AUD/USD breakout above 0.6950, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7000
- Take Profit Zone: 0.7080 – 0.7135
- Stop Loss Level: 0.6950
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
