Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Consumer Inflation Expectations for May increased by 3.5% annualized. Forex traders can compare this to Australian Consumer Inflation Expectations for April, which increased by 3.2% annualized.
The Australian Employment Change for April was reported at -30.6K. Economists predicted a figure of 15.0K. Forex traders can compare this to the Australian Employment Change for March, reported at 77.0K. The Unemployment Rate for April was reported at 5.5%. Economists predicted a reading of 5.6%. Forex traders can compare this to the Unemployment Rate for March, reported at 5.7%. 33.8K Full-Time Positions were created, and 64.4K Part-Time Positions were lost, in April. Forex traders can compare this to the loss of 21.1K Full-Time Positions and the creation of 98.1K Part-Time Positions, reported in March. The Labor Force Participation Rate for April was reported at 66.0%. Economists predicted a reading of 66.3%. Forex traders can compare this to the Labor Force Participation Rate for March, reported at 66.3%.
US Initial Jobless Claims for the week of May 15th are predicted at 450K, and US Continuing Claims for the week of May 8th are predicted at 3,640K. Forex traders can compare this to US Initial Jobless Claims for the week of May 8th, reported at 473K, and to US Continuing Claims for the week of May 1st, reported at 3,655K. The Philadelphia Fed Manufacturing Index for May is predicted at 43.0. Forex traders can compare this to the Philadelphia Fed Manufacturing Index for April, reported at 50.2.
The forecast for the AUD/USD turned temporarily bullish with price action resting inside of its Ichimoku Kinko Hyo Cloud, carrying a minor bullish bias. With risk-off sentiment on the rise and economic conditions deteriorating in the US, traders should prepare for more US Dollar weakness. The ascending Kijun-sen is likely to cross above the flat Tenkan-sen, delivering another upside catalyst. After the CCI recorded two higher highs, a third one may follow and strengthen the short-term bullish case. Can bulls force the AUD/USD into its next horizontal resistance 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 breakout above the 0.7710 to 0.7790 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7745
- Take Profit Zone: 0.7975 – 0.8005
- Stop Loss Level: 0.7675
Should price action for the AUD/USD breakdown below 0.7710, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.7675
- Take Profit Zone: 0.7530 – 0.7585
- Stop Loss Level: 0.7710
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