Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Construction Index for February came in at -18.4. Forex traders can compare this to the Australian AiG Construction Index for January, reported at -11.5. The AiG Manufacturing Index for February came in at -25.3, and the AiG Industry Index at -12.6. Forex traders can compare this to the AiG Manufacturing Index for January, reported at -23.8, and the AiG Industry Index at -9.9.
The Australian GDP for the fourth quarter expanded 0.2% quarterly and 1.5% annualized. Economists predicted an increase of 0.2% and 1.4% annualized. Forex traders can compare this to the Australian GDP for the third quarter, which rose 0.3% quarterly and 2.1% annualized. Capital Expenditure for the fourth quarter decreased 0.2% quarterly, the Chain Price Index rose 2.0% quarterly, and Final Consumption expanded 0.2% quarterly. Forex traders can compare this to Capital Expenditure for the third quarter, which increased by 1.6% quarterly, the Chain Price Index, which accelerated by 0.5% quarterly, and Final Consumption, which expanded by 0.3% quarterly.
Australian Final Retail Sales for January rose 1.1% monthly. Economists predicted an increase of 1.1% monthly. Forex traders can compare this to Australian Retail Sales for December, which dropped 2.1% monthly.
The German Trade Balance for January is predicted at €21.0B. Forex traders can compare this to the German Trade Balance for December, reported at €22.2B. Exports for January are predicted to increase by 1.5% monthly, and Imports by 1.8% monthly. Forex traders can compare this to Exports for December, which dropped 4.6% monthly, and Imports, which plunged by 6.7% monthly.
Eurozone Retail Sales for January are predicted to increase by 0.1% monthly and decrease by 1.3% annualized. Forex traders can compare this to Eurozone Retail Sales for December, which contracted by 1.1% monthly and 0.8% annualized.
The forecast for the EUR/AUD turned cautiously bearish after this currency pair reached its horizontal resistance area. The Tenkan-sen flatlined with the Kijun-sen moving higher, suggesting volatility could increase. Adding to the rising bearish momentum is the descending Senkou Span A of the Ichimoku Kinko Hyo Cloud, while the Senkou Span is flat. Traders should also monitor the CCI following its breakdown from extreme overbought territory with plenty of downside potential. Can bears regain control over the EUR/AUD and force price action 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 1.6600 to 1.6690 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6655
- Take Profit Zone: 1.6400 – 1.6440
- Stop Loss Level: 1.6740
Should price action for the EUR/AUD breakout above 1.6690, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6740
- Take Profit Zone: 1.6800 – 1.6840
- Stop Loss Level: 1.6690
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