Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Consumer Inflation Expectations for October increased by 3.4% annualized. Forex traders can compare this to Australian Consumer Inflation Expectations for September, which increased by 3.1% annualized. The Australian Employment Change for September was reported at -29.5K. Economists predicted a figure of -35.0K. Forex traders can compare this to the Australian Employment Change for August, reported at 129.1K. The Unemployment Rate for September was reported at 6.9%. Economists predicted a reading of 7.1%. Forex traders can compare this to the Unemployment Rate for August, reported at 6.8%. 20.1K Full-Time Positions and 9.4K Part-Time Positions were lost in September. Forex traders can compare this to the creation of 12.1K Full-Time Positions and 117.0K Part-Time Positions, reported in August. The Labor Force Participation Rate for September was reported at 64.8%. Economists predicted a reading of 64.8%. Forex traders can compare this to the Labor Force Participation Rate for August, reported at 64.8%.
US Initial Jobless Claims for the week of October 10th are predicted at 825K, and US Continuing Claims for the week of October 3rd are predicted at 10,700K. Forex traders can compare this to US Initial Jobless Claims for the week of October 3rd, which were reported at 840K, and to US Continuing Claims for the week of September 26th, which were reported at 10,976K. The US Empire Manufacturing Index for October is predicted at 15.0. Forex traders can compare this to the US Empire Manufacturing Index for September, reported at 17.0. The Philadelphia Fed Manufacturing Index for October is predicted at 14.0. Forex traders can compare this to the Philadelphia Fed Manufacturing Index for September, reported at 15.0.
The forecast for the AUD/USD is turning moderately bullish following a drop below its Ichimoku Kinko Hyo Cloud. While price action may move marginally lower, US initial jobless claims are expected to reignite US Dollar selling. The CCI is approaching oversold territory, and with US economic data set to disappoint, a move above the sideways trending Tenkan-sen and Kijun-sen is predicted. Will bulls possess the strength to halt the sell-off and retrace lost ground? 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 0.7085 to 0.7135 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7110
- Take Profit Zone: 0.7365 – 0.7415
- Stop Loss Level: 0.7065
Should price action for the AUD/USD breakdown below 0.7085 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.7065
- Take Profit Zone: 0.6960 – 0.7010
- Stop Loss Level: 0.7085
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