Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Australian Judo Bank Manufacturing PMI for July came in at 49.6. Economists predicted a figure of 49.6. Forex traders can compare this to the Australian Judo Bank Manufacturing PMI for June, reported at 48.2.
Australian Building Approvals for June plunged by 7.7% monthly and 18.0% annualized. Forex traders can compare this to Australian Building Approvals for May, which surged by 20.6% monthly and dropped 9.8% annualized. Australian Private House Approvals for June contracted by 1.3% monthly. Forex traders can compare this to Australian Private House Approvals for May, which rose by 0.9% monthly.
Australian Home Loans for June contracted 2.8% monthly, and Investment Lending for Homes rose 2.6% monthly. Forex traders can compare this to Australian Home Loans for May, which increased by 5.1% monthly, and Investment Lending for Homes, which expanded by 5.9% monthly.
The Chinese Caixin Manufacturing PMI for July came in at 49.2. Economists predicted a figure of 50.3. Forex traders can compare this to the Chinese Caixin Manufacturing PMI for June, reported at 50.5.
The Reserve Bank of Australia kept interest rates unchanged at 4.10%. Economists predicted an increase of 25 basis points to 4.35%. Forex traders can compare this to the previous Reserve Bank of Australia interest rate decision, where it surprised markets by keeping interest rates unchanged. It marked the third consecutive meeting where the Australian central bank surprised markets and could serve as a blueprint for other central banks to follow suit.
The Spanish HCOB Manufacturing PMI for July is predicted at 48.3. Forex traders can compare this to the Spanish S&P Global Manufacturing PMI for June, reported at 48.0.
The Italian HCOB Manufacturing PMI for July is predicted at 44.2. Forex traders can compare this to the Italian Manufacturing PMI for June, reported at 43.8.
The Final French HCOB Manufacturing PMI for July is predicted at 44.5. Forex traders can compare this to the French Manufacturing PMI for June, reported at 46.0.
The Final German HCOB Manufacturing PMI for July is predicted at 38.6. Forex traders can compare this to the German Manufacturing PMI for June, reported at 40.6.
The Final Eurozone HCOB Manufacturing PMI for July is predicted at 42.7. Forex traders can compare this to the Eurozone Manufacturing PMI for June, reported at 43.4.
The German Unemployment Change for July is predicted at 20.0K and the German Unemployment Rate at 5.7%. Forex traders can compare this to the German Unemployment Change for June, reported at 28.0K, and the German Unemployment Rate, reported at 5.7%.
The Italian Unemployment Rate for June is predicted at 7.7%. Forex traders can compare this to the Italian Unemployment Rate for May, reported at 7.6%.
The Eurozone Unemployment Rate for June is predicted at 6.5%. Forex traders can compare this to the Eurozone Unemployment Rate for May, reported at 6.5%.
The forecast for the EUR/AUD is cautiously bearish after this currency pair advanced into its horizontal resistance area. The descending Tenkan-sen adds to downside pressure, and a pending bearish crossover below the flat Kijun-sen could magnify sell orders as the Ichimoku Kinko Hyo Cloud flatlined. Traders should monitor the CCI after it spiked out of extreme oversold territory. This technical indicator has lost upside momentum, and a move below zero could trigger heavy selling, as the CCI has plenty of downside potential. Can bears overpower bulls and force the EUR/AUD into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/AUD remain inside the or breakdown below the 1.6450 to 1.6550 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6495
- Take Profit Zone: 1.6100 – 1.6200
- Stop Loss Level: 1.6590
Should price action for the EUR/AUD breakout above 1.6550, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6590
- Take Profit Zone: 1.6670 – 1.6785
- Stop Loss Level: 1.6550
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