Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Wage Price Index for the first quarter increased by 0.8% quarterly and by 4.1% annualized. Economists predicted a rise of 0.9% and 4.2% annualized. Forex traders can compare this to the Australian Wage Price Index for the fourth quarter, which rose by 1.0% quarterly and by 0.9% annualized.
The US CPI for April is predicted to increase by 0.4% monthly and by 3.4% annualized. Forex traders can compare this to the US CPI for March, which rose by 0.4% monthly and 3.5% annualized. The US Core CPI for April is predicted to expand by 0.3% monthly and by 3.6% annualized. Forex traders can compare this to the US Core CPI for March, which rose by 0.4% monthly and 3.8% annualized.
US Retail Sales for April are predicted to increase by 0.4% monthly and Core Retail Sales by 0.2% monthly. Forex traders can compare this to US Retail Sales for March, which rose by 0.7% monthly, and Core Retail Sales, which expanded by 1.1% monthly.
The US Empire Manufacturing Index for May is predicted at -9.90. Forex traders can compare this to the US Empire Manufacturing Index for April, reported at -14.30.
US Business Inventories for March are predicted to decrease by 0.1% monthly, and Retail Inventories excluding Autos by 0.1%. Forex traders can compare this to US Business Inventories for February, which rose by 0.4% monthly, and Retail Inventories excluding Autos, which decreased by 0.1%.
The US NAHB Housing Market Index for May is predicted at 51. Forex traders can compare this to the US NAHB Housing Market Index for April, reported at 51.
US Crude Oil Inventories Change for the week ending May 10th are predicted to drop by 0.400M. Traders can compare this to US Crude Oil Inventories Change for the week ending May 3rd, which surged by 1.362M. US Gasoline Inventories Change for the week ending May 10th are predicted to increase by 0.880M, and US Distillate Stocks Change to expand by 0.770M. Traders can compare this to US Gasoline Inventories Change for the week ending May 3rd, which expanded by 0.560M, and US Distillate Stocks Change, which rose by 0.915M.
US TIC Net Long-Term Transactions for March are predicted at $89.3B. Forex traders can compare this to US TIC Net Long-Term Transactions for February, reported at $71.5B.
The forecast for the AUD/USD turned cautiously bearish after this currency pair advanced into its horizontal resistance area. Volatility could rise with the Tenkan-sen moving higher and the Kijun-sen flat. The Senkou Span A of the Ichimoku Kinko Hyo is also moving higher with the Senkou Span B flat. Traders should monitor the CCI in extreme overbought territory, as a breakdown could trigger a sell-off. Can bears regain control over 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 0.6625 to 0.6670 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6645
- Take Profit Zone: 0.6475 – 0.6515
- Stop Loss Level: 0.6700
Should price action for the AUD/USD breakout above 0.6670, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6700
- Take Profit Zone: 0.6740 – 0.6785
- Stop Loss Level: 0.6670
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