Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Performance of Manufacturing Index for September came in at 50.2. Forex traders can compare this to the Australian AiG Performance of Manufacturing Index for August at 49.3.
Australian ANZ Job Advertisements for September contracted 0.5% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for August, which rose 2.0% monthly.
Australian Building Approvals for August surged 28.1% monthly, and Private House Approvals increased 4.1% monthly. Forex traders can compare this to Australian Building Approvals for July, which plunged 18.2% monthly, and Private House Approvals, which rose 0.7% monthly.
Australian Home Loans for August contracted 2.7% monthly, and Investment Lending for Homes plunged 4.8% monthly. Forex traders can compare this to Australian Home Loans for July, which plunged 7.0% monthly, and Investment Lending for Homes, which cratered 11.2% monthly.
The Reserve Bank of Australia increased interest rates by 25 basis points to 2.60%. Economists predicted a rise of 50 basis points from 2.35%. Forex traders can compare this to the previous Reserve Bank of Australia interest rate decision, where it hiked rates by 50 basis points. The increase surprised markets, as expectations called for a 50 basis point hike to 2.85. The RBA noted conditions warranted a smaller increase and added that it plans to continue tightening as the economy slows while inflation persists.
The RBA is the first G7 central bank to under-deliver an interest rate increase in the current global tightening cycle and could once again lead global central banks. Traders will get speeches from US Federal Reserve members Williams, Mester, Jefferson, ECB President Lagarde, and Bundesbank member Beerman, which could move the US Dollar and the Euro.
US Factory Orders for August are predicted to increase by 0.3% monthly. Forex traders can compare this to US Factory Orders for July, which plunged 1.0% monthly. US JOLTS Job Openings for August are predicted at 10.775M. Forex traders can compare this to US JOLTS Job Openings for July, reported at 11.239M.
The forecast for the AUD/USD turned cautiously bullish after this currency pair stabilized at its horizontal support area. Short-term volatility could rise after the Kijun-sen has turned flat while the Tenkan-sen drifts lower. The descending Ichimoku Kinko Hyo Cloud poses dynamic resistance, but the forecast calls for a gradual easing of bearish pressures. Traders should monitor the CCI following its breakout from extreme oversold territory. A move above the zero level could accelerate upside pressure on price action as this technical indicator has plenty of upside potential. 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 0.6415 to 0.6535 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6480
- Take Profit Zone: 0.6770 – 0.6860
- Stop Loss Level: 0.6360
Should price action for the AUD/USD breakdown below 0.6415, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6360
- Take Profit Zone: 0.6235 – 0.6295
- Stop Loss Level: 0.6415
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