Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Private Capital Expenditure for the first quarter decreased 0.3% quarterly. Economists predicted an increase of 1.5%. Forex traders can compare this to Australian Private Capital Expenditure for the fourth quarter, which increased 1.1% quarterly. Australian Building Capital Expenditure for the first quarter dropped 1.7% quarterly. Forex traders can compare this to Australian Building Capital Expenditure for the fourth quarter, which rose 2.2% quarterly. Australian Plant & Machinery Capital Expenditure expanded 1.2% quarterly. Forex traders can compare this to Australian Plant & Machinery Capital Expenditure for the fourth quarter, which decreased 0.1% quarterly.
US Initial Jobless Claims for the week of May 21st are predicted at 215K, and US Continuing Claims for the week of May 14th at 1,310K. Forex traders can compare this to US Initial Jobless Claims for the week of May 14th, reported at 218K, and US Continuing Claims for the week of May 7th, reported at 1,317K.
The Advanced US GDP for the first quarter is predicted to drop 1.3% annualized. Forex traders can compare this to the fourth-quarter GDP, which increased 6.9% annualized. The GDP Price Index for the first quarter is predicted to rise 8.0% annualized. Forex traders can compare this to the fourth quarter GDP Price Index, which rose 7.1% annualized. The Core PCE for the first quarter is predicted to expand by 5.2% annualized. Forex traders can compare this to fourth quarter Core PCE, which increased 5.0% annualized.
US Pending Home Sales for April are predicted to drop 2.0% monthly. Forex traders can compare this to US Pending Home Sales for March, which decreased 1.2% monthly. The US economy continues to slow, as evident by yesterday’s durable good orders report for April, placing the US on track for a potential technical recession. Today’s second US GDP reading is likely to move the US Dollar if it comes in below the initial data.
The forecast for the AUD/USD remains bullish after this currency pair reversed off its horizontal support area. Adding to the upbeat forecast is the flattening Ichimoku Kinko Hyo Cloud, from where a move higher is likely, and the ascending Tenkan-sen. Traders should monitor it for a bullish crossover above its flat Kijun-sen, likely to increase buy orders. The CCI formed a positive divergence in extreme oversold territory, followed by a breakout and move above zero. This technical indicator is expected to push into extreme overbought territory. Can bulls extend their recovery and pressure the AUD/USD into its 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 0.7035 to 0.7140 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7070
- Take Profit Zone: 0.7375 – 0.7455
- Stop Loss Level: 0.6950
Should price action for the AUD/USD breakdown below 0.7035, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6950
- Take Profit Zone: 0.6775 – 0.6830
- Stop Loss Level: 0.7035
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
