Following an economic data heavy week, forex traders will get Eurozone retail sales to close out their week. The EURAUD has spiked into strong resistance levels, but bullish momentum is fading as economic data has deteriorated further. How resilient is the Eurozone consumer? US President Trump has announced another round of tariffs on Chinese imports yesterday, how will this impact price action in this currency pair? Subscribe to the PaxForex Daily Fundamental Analysis where you can grow your balance trade-by-trade!
Here are the key factors to keep in mind today for Euro trades:
- Spanish Unemployment Change: The Spanish Unemployment Change for July was reported at -4.3K. Economists predicted a figure of -21.4K. Forex traders can compare this to the Spanish Unemployment Change for June which was reported at -63.8K.
- Italian Industrial Production: Italian Industrial Production for June is predicted to decrease by 0.3% monthly and by 2.1% annualized. Forex traders can compare this to Italian Industrial Production for May which increased by 0.9% monthly and which decreased by 0.7% annualized.
- Italian Retail Sales: Italian Retail Sales for June are predicted to increase by 0.4% monthly and by 0.2% annualized. Forex traders can compare this to Italian Retail Sales for May which decreased by 0.7% monthly and by 1.8% annualized.
- Eurozone PPI: The Eurozone PPI for June is predicted to decrease by 0.3% monthly and to increase by 0.8% annualized. Forex traders can compare this to the Eurozone PPI for May which decreased by 0.1% monthly and which increased by 1.6% annualized.
- Eurozone Retail Sales: Eurozone Retail Sales for June are predicted to increase by 0.2% monthly and by 1.3% annualized. Forex traders can compare this to Eurozone Retail Sales for May which decreased by 0.3% monthly and which increased by 1.3% annualized.
The Australian Dollar remained firm after retail sales rose above expectations in June, but came in weaker for the second-quarter excluding inflation. The Australian Dollar remains the top Chinese Yuan proxy trade, but after US President Trump announced yesterday that he will impose additional tariffs on Chinese imports, the EURAUD held its ground. Forex traders are now awaiting the Chinese response to Trump’s announced 10% tariffs on $300 billion worth of imports as he now essentially applied his tariffs on all goods imported from China. How will the EURAUD trade moving forward? Today’s fundamental analysis will take a look at upside and downside potential of this currency pair.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian PPI: The Australian PPI for the second-quarter increased by 0.4% quarterly and by 2.0% annualized. Forex traders can compare this to the Australian PPI for the first-quarter of which increased by 0.4% quarterly and by 1.9% annualized.
- Australian Retail Sales: Australian Retail Sales for June increased by 0.4% monthly. Economists predicted an increase of 0.3% monthly. Forex traders can compare this to Australian Retail Sales for May which increased by 0.1% monthly. Australian Retail Sales excluding Inflation for the second-quarter increased by 0.2% quarterly. Economists predicted an increase of 0.3% quarterly. Forex traders can compare this to Australian Retail Sales excluding Inflation for the first-quarter which decreased by 0.1% quarterly.
Should price action for the EURAUD remain inside the or breakdown below the 1.6230 to 1.6310 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6270
- Take Profit Zone: 1.5890 – 1.5945
- Stop Loss Level: 1.6350
Should price action for the EURAUD breakout above 1.6310 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6350
- Take Profit Zone: 1.6445 – 1.6500
- Stop Loss Level: 1.6310
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