Australian consumer confidence rebounded strongly for the month of November while wage growth extended. This may be a positive sign for the holiday shopping season which officially kicked off earlier this week. The AUDUSD remained well supported as forex traders follow developments surrounding the phase one trade deal between the US and China which continues to lack derails. Will bulls rally this currency pair further or can bears make a stand? Today’s fundamental analysis will take a look at price action in both directions.
Today’s inflation data out of the US will likely confirm that inflation remains subdued. While the US Fed cut interest rates three times, it requires time for those cute to work through the economy. Real average hourly earnings for October are anticipated to post a minor gain which further erases inflationary pressures while the budget deficit is set to expand faster. How will the AUDUSD trader after the release of US economic data? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian Westpac Consumer Confidence: Australian Westpac Consumer Confidence for November increased by 4.5% monthly to 97.0. Forex traders can compare this to Australian Westpac Consumer Confidence for October which decreased by 5.5% monthly to 92.8.
- Australian Wage Price Index: The Australian Wage Price Index for the third-quarter increased by 0.5% quarterly and by 2.2% annualized. Economists predicted an increase of 0.5% quarterly and of 2.2% annualized. Forex traders can compare this to the Australian Wage Price Index for the second-quarter which increased by 0.6% quarterly and by 2.3% annualized.
Here are the key factors to keep in mind today for US Dollar trades:
- US CPI: The US CPI for October is predicted to increase by 0.3% monthly and by 1.7% annualized. Forex traders can compare this to the US CPI for September which was reported flat at 0.0% monthly and which increased by 1.7% annualized. The US Core CPI for October is predicted to increase by 0.2% monthly and by 2.4% annualized. Forex traders can compare this to the US Core CPI for September which increased by 0.1% monthly by 2.4% annualized.
- US Real Average Hourly Earnings: US Real Average Hourly Earnings for October are predicted to increase by 0.1% monthly. Forex traders can compare this to US Real Average Hourly Earnings for September which decreased by 0.1% monthly.
- US Monthly Budget Statement: The US Monthly Budget Statement for October is predicted at -$128.2B. Forex traders can compare this to the US Monthly Budget Statement for September which was reported at $82.8B.
Should price action for the AUDUSD remain inside the or breakout above the 0.6835 to 0.6865 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6850
- Take Profit Zone: 0.7025 – 0.7080
- Stop Loss Level: 0.6810
Should price action for the AUDUSD breakdown below 0.6835 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6810
- Take Profit Zone: 0.6725 – 0.6750
- Stop Loss Level: 0.6835
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