Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Private Sector Credit for May increased by 0.4% monthly, and Housing Credit by 0.4% monthly. Forex traders can compare this to Australian Private Sector Credit for April, which rose by 0.5% monthly, and Housing Credit by 0.5% monthly.
US Personal Income for May is predicted to increase by 0.4% monthly and Personal Spending by 0.3% monthly. Forex traders can compare this to Personal Income for April, which rose by 0.3% monthly, and Personal Spending by 0.2% monthly. The PCE Deflator for May is predicted flat at 0.0% monthly and to expand by 2.6% annualized. Forex traders can compare this to the PCE Deflator for April, which rose by 0.3% monthly and 2.7% annualized. The PCE Core Deflator for May is predicted to expand by 0.1% monthly and 2.6% annualized. Forex traders can compare this to the PCE Core Deflator for April, which increased by 0.2% monthly and 2.8% annualized.
The US Chicago PMI for June is predicted at 39.7. Forex traders can compare this to the US Chicago PMI for May, reported at 35.4.
The final US Michigan Consumer Sentiment for June is predicted at 65.6. Forex traders can compare this to US Michigan Consumer Confidence for May, reported at 69.1. Final Current Conditions for June are predicted at 62.5, and Final Expectations at 67.6. Forex traders can compare this to Current Conditions for May, reported at 69.6, and Expectations at 68.8. Final US Michigan Inflation Expectations for June are predicted at 3.3%, and Final US Michigan 5-year Inflation Expectations at 3.1%. Forex traders can compare this to Final US Michigan Inflation Expectations for May, reported at 3.3%, and Final US Michigan 5-Year Inflation Expectations at 3.0%.
The forecast for the AUD/USD remains bearish after this currency pair broke down below its horizontal resistance area. Short-term volatility could rise with the Kijun-sen and the Tenkan-sen in close proximity until a bearish crossover materializes. The Ichimoku Kinko Hyo Cloud ended its expansion, and a narrowing could add to selling pressure, driven by a downward-shifting Senkou Span A and a flat Senkou Span B. Traders should also monitor the CCI following its breakdown below zero. This technical indicator has plenty of downside potential to lead price action lower. Can bears strengthen their grip on the AUD/USD and force price action 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 0.6600 to 0.6645 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6620
- Take Profit Zone: 0.6435 – 0.6475
- Stop Loss Level: 0.6675
Should price action for the AUD/USD break out above 0.6645, PaxForex the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6675
- Take Profit Zone: 0.6715 – 0.6740
- Stop Loss Level: 0.6645
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