Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Business Inventories for the first quarter increased by 1.3% quarterly and Australian Company Gross Operating Profits dropped by 2.5% quarterly. Forex traders can compare this to Australian Inventories for the fourth quarter, which decreased by 1.6% quarterly, and Australian Company Operating Profits, which increased by 7.1% quarterly. Company Pre-Tax Profits for the first quarter plunged 8.4% quarterly. Forex traders can compare this to Company Pre-Tax Profits for the fourth quarter, which rose 8.3% quarterly.
The Australian Current Account Balance for the first quarter came in at -A$4.9B. Economists predicted a figure of A$5.6B. Forex traders can compare this to the Australian Current Account Balance for the fourth quarter, reported at A$2.7B. Australian Net Exports of GDP for the first quarter decreased 0.9% quarterly. Forex traders can compare this to Australian Net Exports of GDP for the fourth quarter, which rose by 0.6% quarterly.
Australian Final Retail Sales for April rose 0.1% monthly. Economists predicted an increase of 0.1% monthly. Forex traders can compare this to Australian Retail Sales for March, which decreased by 0.4% monthly.
US Factory Orders for April are predicted to increase by 0.7% monthly, and factory orders excluding transportation by 0.4% monthly. Forex traders can compare this to US Factory Orders for March, which rose by 1.6% monthly, and factory orders excluding transportation by 0.5% monthly.
The US IBD/TIPP Economic Optimism Index for June is predicted at 45.2. Forex traders can compare this to the US IBD/TIPP Economic Optimism Index for May, reported at 41.8.
US JOLTS Job Openings for April are predicted at 8.370M. Forex traders can compare this to US JOLTS Job Openings for March, reported at 8.488M.
The forecast for the AUD/USD remains bearish after this currency pair moved into its horizontal resistance area. The Kijun-sen flatlined, together with the Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud, but the Tenkan-sen started to drift higher, suggesting an increase in volatility could follow. Traders should also monitor the CCI as it approaches extreme overbought territory. This technical indicator may challenge the 100 level before reversing and leading price action lower. Can bears regain control over the AUD/USD and force this currency pair 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 0.6645 to 0.6700 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6675
- Take Profit Zone: 0.6475 – 0.6515
- Stop Loss Level: 0.6720
Should price action for the AUD/USD break out above 0.6700, PaxForex the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6720
- Take Profit Zone: 0.6740 – 0.6785
- Stop Loss Level: 0.6700
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