Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Construction Index for August came in at -9.9. Forex traders can compare this to the Australian AiG Construction Index for July, reported at -9.2. The AiG Manufacturing Index for August came in at -19.8, and the AiG Industry Index at -11.6. Forex traders can compare this to the AiG Manufacturing Index for July, reported at -25.6, and the AiG Industry Index at -14.7.
The Australian GDP for the second quarter expanded 0.4% quarterly and 2.1% annualized. Economists predicted an increase of 0.3% and 1.8% annualized. Forex traders can compare this to the Australian GDP for the first quarter, which rose 0.4% quarterly and 2.4% annualized. Capital Expenditure for the second quarter increased by 2.4% quarterly, the Chain Price Index decreased by 2.2% quarterly, and Final Consumption expanded by 0.2% quarterly. Forex traders can compare this to Capital Expenditure for the first quarter, which rose by 2.4% quarterly, the Chain Price Index, which increased by 1.7% quarterly, and Final Consumption, which expanded by 0.2% quarterly.
The US Trade Balance for July is predicted at -$68.00B. Forex traders can compare this to the US Trade Balance for June, reported at -$65.50B.
The Final US S&P Global Composite PMI for August is predicted at 50.4, and the Final US S&P Global Services PMI at 51.0. Forex traders can compare this to the US S&P Global Composite PMI for July, reported at 52.0, and the US S&P Global Services PMI at 52.3.
The US IBD/TIPP Economic Optimism Index for September is predicted at 41.1. Forex traders can compare this to the US IBD/TIPP Economic Optimism Index for August, reported at 40.3.
The US ISM Non-Manufacturing PMI for August is predicted at 52.5. Forex traders can compare this to the US ISM Non-Manufacturing PMI for July, reported at 52.7.
The forecast for the AUD/USD remains cautiously bullish after this currency pair descended into its horizontal support area following a failed breakout. The Tenkan-sen flatlined, but the Kijun-sen continued its move lower, suggesting volatility will remain high, aided by the descending Ichimoku Kinko Hyo Cloud. Traders should focus on the CCI in extreme oversold territory, where a positive divergence could form. This technical indicator has recorded a series of higher lows and has plenty of upside potential. A sustained breakout above -100 could offer bulls the spark to attempt a renewed advance. Can bulls regain complete control over the AUD/USD and push price action 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 0.6355 to 0.6405 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6380
- Take Profit Zone: 0.6590 – 0.6640
- Stop Loss Level: 0.6290
Should price action for the AUD/USD breakdown below 0.6345, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6290
- Take Profit Zone: 0.6170 – 0.6210
- Stop Loss Level: 0.6345
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