Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian GDP for the second quarter decreased by 7.0% quarterly and by 6.3% annualized. Economists predicted a decrease of 6.0% and 5.3% annualized. Forex traders can compare this to the Australian GDP for the first quarter, which decreased by 0.3% quarterly, and which increased by 1.6% annualized. Capital Expenditure for the second quarter decreased by 4.9% quarterly, the Chain Price Index decreased by 0.2% quarterly, and Final Consumption decreased by 8.1% quarterly. Forex traders can compare this to Capital Expenditure for the first quarter, which decreased by 0.8% quarterly, to the Chain Price Index, which increased by 1.1% quarterly, and to Final Consumption, which decreased by 0.3% quarterly.
The US ADP Employment Change for August is predicted at 950K. Forex traders can compare this to the US ADP Employment Change for July, reported at 167K. US Factory Orders for July are predicted to increase by 6.0% monthly. Forex traders can compare this to US Factory Orders for June, which increased by 6.2% monthly.
The forecast for the AUD/USD turned bearish after the second-quarter GDP came in worse than expected and the country entered a recession. Forex traders look forward to today’s US ADP data and factory orders, which are expected to show an upbeat assessment of economic conditions in the US. Price action formed bearish candlestick patterns and favored to collapse below its flattening Tenkan-sen and Kijun-sen. The next stop is its horizontal support area near the top of the Ichimoku Kinko Hyo Cloud. Will bears get the economic data needed to force a sell-off? 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 breakdown below the 0.7340 to 0.7400 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.7365
- Take Profit Zone: 0.7075 – 0.7135
- Stop Loss Level: 0.7455
Should price action for the AUD/USD breakout above 0.7400 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7455
- Take Profit Zone: 0.7530 – 0.7580
- Stop Loss Level: 0.7400
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