Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Building Approvals for March decreased by 0.1% monthly and plunged by 17.3% annualized. Forex traders can compare this to Australian Building Approvals for February, which increased 4.0% monthly and collapsed 31.1% annualized. Australian Private House Approvals for March decreased by 2.8% monthly. Forex traders can compare this to Australian Private House Approvals for February, which surged 11.3% monthly.
Australian NAB Business Conditions for April came in at 14, and Australian NAB Business Confidence was at 0. Economists predicted a reading of 9 and 0. Forex traders can compare this to NAB Business Conditions for March, reported at 16, and Australian NAB Business Confidence at -1.
Chinese Forex Reserves for April came in at $3.205T. Economists predicted a level of $3.192T. Forex traders can compare this to Chinese Forex Reserves for March, reported at $3.184T.
The US Conference Board Employment Index for April is predicted at 117.37. Forex traders can compare this to the US Conference Board Employment Index for March, reported at 116.24.
US Wholesale Inventories for March are predicted to increase by 0.1% monthly and Wholesale Trade Sales by 0.5% monthly. Forex traders can compare this to US Wholesale Inventories for February, which rose by 0.1% monthly, and US Wholesale Trade Sales, which expanded by 0.4% monthly.
Forex traders will also await the 3-month and the 6-month US bill auctions to gauge short-term borrowing costs after the US Federal Reserve increased interest rates last week. It usually takes six to nine months for monetary tightening to work through the economy. Since the central bank has been raising rates for over a year, yields have increased, and bond prices have tumbled, which caused the collapse of three regional banks since March. The US Loan Office Survey could provide additional insights into the trends in the sector.
The forecast for the AUD/USD turned cautiously bearish after this currency pair surged into its Ichimoku Kinko Hyo Cloud, which shows a flat Senkou Span B but a contracting Senkou Span A. Volatility could remain high as the Tenkan-sen drifts higher but remains below its flat Kijun-sen. Traders should also monitor the CCI in extreme overbought territory. This technical indicator could record a lower high before reversing into a double breakdown, below 100 and zero. The first breakdown could trigger a sell-off, given the current advance. 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 0.6755 to 0.6795 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Long Position @ 0.6755
- Take Profit Zone: 0.6665 – 0.6600
- Stop Loss Level: 0.6840
Should price action for the AUD/USD breakout above 0.6795, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6840
- Take Profit Zone: 0.6905 – 0.6935
- Stop Loss Level: 0.6795
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
