Australian PMI data for June came in much better than expected. This was a rare sign of better-than-expected economic data in a global economy which is heading for its next recession. The Australian Dollar added to its recovery after the currency has been shunned by many forex traders due to its Chinese Yuan proxy status. As the US central bank has prepared markets for an interest rate cut, the AUDUSD is poised to accelerate higher after the breakout above its horizontal support area. Bullish momentum is on the rise, how far can it push price action to the upside? Forex trading strategies are slow to react to this sentiment change, make sure to remain ahead of the curve and subscribe to the PaxForex Daily Fundamental Analysis!

Here is the key factor to keep in mind today for Australian Dollar trades:

• Australian CBA Manufacturing PMI, CBA Services PMI and CBA Composite PMI: Preliminary Australian Manufacturing PMI for June was reported at 51.7. Forex traders can compare this to the Australian CBA Manufacturing PMI for May which was reported at 51.0.The Preliminary Australian CBA Services PMI for June was reported at 53.3. Forex traders can compare this to the Australian CBA Services PMI for May which was reported at 51.5. The Preliminary Australian CBA Composite PMI for June was reported at 53.1. Forex traders can compare this to the Australian CBA Composite PMI for for May which was reported at 51.5.

Forex traders will look forward to the last piece of market moving economic data this week as the US is reporting PMI data for June. All three components are dangerously close to the 50.0 level, a drop below signals contraction. Will today’s PMI report disappoint and clock in below expectations? The trade war the US started with China is having a bigger then expected negative impact on the US economy and today’s data could further confirm this. A dip below 50.0 is likely to cause a strong sell-off in the US Dollar, is your FX trading account prepared and protected for the potential volatility spike?

Here are the key factors to keep in mind today for US Dollar trades:

• US Markit Manufacturing PMI, Services PMI and Composite PMI: The Preliminary US Markit Manufacturing PMI for June is predicted at 50.5. Forex traders can compare this to the US Markit Manufacturing PMI for May which was reported at 50.5. The Preliminary US Markit Services PMI for June is predicted at 51.0. Forex traders can compare this to the US Markit Services PMI for May which was reported at 50.9. The Preliminary US Markit Composite PMI for June is predicted at 51.0. Forex traders can compare this to the US Markit Composite PMI for May which was reported at 50.9.
• US Existing Home Sales: US Existing Home Sales for May are predicted to increase by 1.2% monthly to 5.25M. Forex traders can compare this to US Existing Home Sales for April which decreased by 0.4% monthly to 5.19M.

Should price action for the AUDUSD remain inside the or breakout above the 0.6910 to 0.6965 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 0.6930
• Take Profit Zone: 0.7150 – 0.7200
• Stop Loss Level: 0.6875

Should price action for the AUDUSD breakdown below 0.6910 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 0.6885
• Take Profit Zone: 0.6640 – 0.6770
• Stop Loss Level: 0.6910

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