Forex traders will get final CPI data out of France and Spain, while GDP data will be released out of Germany and the Eurozone. Economists predicted that Germany entered a recession in the third-quarter, but was able to avoid one while second-quarter GDP was revised lower. Today’s Eurozone GDP data will show what impact it has on the Eurozone as a whole. How will the EURAUD react after the release of today’s GDP data? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
The Australian employment report disappointed and showed unexpected job losses which resulted in an increase in selling pressure on the Australian Dollar. Inflation expectations soared to 4.0% and Chinese data came in mixed with a disappointing industrial production figure. The EURAUD advanced, but will bulls be able to push through resistance or are bears gearing up for a reversal? Today’s fundamental analysis will take a look at the upside potential as well as downside risk in this currency pair.
Here are the key factors to keep in mind today for Euro trades:
- French Unemployment Rate: The French Unemployment Rate for the third-quarter was reported at 8.6%. Economists predicted a figure of 8.4%. Forex traders can compare this to the French Unemployment Rate for the second-quarter which was reported at 8.5%.
- German GDP: The Preliminary German GDP for the third-quarter increased by 0.1% quarterly and by 0.5% annualized. Economists predicted a decrease of 0.1% and an increase of 0.4%. Forex traders can compare this to the German GDP report for the second-quarter which decreased by 0.2% quarterly and which increased by 0.4% annualized.
- Final French CPI: The Final French CPI for October is predicted to decrease by 0.3% monthly and to increase by 1.1% annualized. Forex traders can compare this to the previous French CPI for October which decreased by 0.3% monthly and which increased by 1.1% annualized. The Final French Harmonized Spanish CPI for October is predicted to decrease by 0.1% monthly and to increase by 0.9% annualized. Forex traders can compare this to the previous French Harmonized Spanish CPI for October which decreased by 0.1% monthly and which increased by 0.9% annualized.
- Final Spanish CPI: The Final Spanish CPI for October is predicted to increase by 1.0% monthly and by 0.1% annualized. Forex traders can compare this to the previous Spanish CPI for October which increased by 1.0% monthly and by 0.1% annualized. The Final Spanish Harmonized Spanish CPI for October is predicted to increase by 0.6% monthly and by 0.2% annualized. Forex traders can compare this to the previous Spanish Harmonized Spanish CPI for October which increased by 0.6% monthly and by 0.2% annualized.
- Eurozone GDP: The preliminary Eurozone GDP for the third-quarter is predicted to increase by 0.2% quarterly and by 1.1% annualized. Forex traders can compare this to the Eurozone GDP for the second-quarter which increased by 0.2% quarterly and by 1.1% annualized.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian Consumer Inflation Expectations: Australian Consumer Inflation Expectations for November increased by 4.0% annualized. Forex traders can compare this to Australian Consumer Inflation Expectations for October which increased by 3.6% annualized.
- Australian Employment Report: The Australian Employment Change for October was reported at -19.0K. Economists predicted a figure of 15.0K. Forex traders can compare this to the Australian Employment Change for September which was reported at 12.5K. The Unemployment Rate for October was reported at 5.3%. Economists predicted a reading of 5.2%. Forex traders can compare this to the Unemployment Rate for September which was reported at 5.2%. 10.3K Full-Time Positions and 8.7K Part-Time Positions were lost in October. Forex traders can compare this to the creation of 24.9K Full-Time Positions and the loss of 12.5K Part-Time Positions which were reported in September. The Labor Force Participation Rate for October was reported at 66.0%. Economists predicted a reading of 66.1%. Forex traders can compare this to the Labor Force Participation Rate for September which was reported at 66.1%.
- Chinese Retail Sales: Chinese Retail Sales for October increased by 7.2% annualized. Economists predicted an increase of 7.8% annualized. Forex traders can compare this to Chinese Retail Sales for September which increased by 7.8% annualized.
- Chinese Industrial Production: Chinese Industrial Production for October increased by 4.7% annualized. Economists predicted an increase of 5.4% annualized. Forex traders can compare this to Chinese Industrial Production for September which increased by 5.8% annualized.
- Chinese Fixed Assets ex Rural: Chinese Fixed Assets ex Rural for October increased by 5.2% annualized. Economists predicted an increase of 5.4% annualized. Forex traders can compare this to Chinese Fixed Assets ex Rural for September which increased by 5.4% annualized.
- Chinese Property Investment: Chinese Property Investment for October increased by 10.3% annualized. Forex traders can compare this to Chinese Property Investment for September which increased by 10.5% annualized.
- Chinese Surveyed Jobless Rate: The Chinese Surveyed Jobless Rate for October was reported at 5.1%. Forex traders can compare this to the Chinese Surveyed Jobless Rate for September which was reported at 5.2%.
Should price action for the EURAUD remain inside the or breakdown below the 1.6145 to 1.6215 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6180
- Take Profit Zone: 1.5685 – 1.5780
- Stop Loss Level: 1.6270
Should price action for the EURAUD breakout above 1.6215 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6270
- Take Profit Zone: 1.6365 – 1.6430
- Stop Loss Level: 1.6215
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