Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Australian Judo Bank Services PMI for July came in at 47.9, and the Final Australian Judo Bank Composite PMI at 48.2. Economists predicted a reading of 48.0 and 48.2. Forex traders can compare this to the Australian Judo Bank Services PMI for June, reported at 50.3, and the Final Australian Judo Bank Composite PMI at 50.1.
The Australian Trade Balance for June came in at A$11,321M. Economists predicted a figure of A$11.000M. Forex traders can compare this to the Australian Trade Balance for May, reported at A$10,497M. Exports for June decreased by 2.0% monthly, and imports by 4.0%. Forex traders can compare this to exports for May, which increased by 3.2%, and imports by 3.5%.
Australian Retail Sales for the second quarter decreased by 0.5% quarterly. Economists predicted a drop of 1.8% quarterly. Forex traders can compare this to Australian Retail Sales for the first quarter, which dropped by 0.8% quarterly.
The Chinese Caixin Services PMI for July came in at 54.1, and the Chinese Caixin Composite PMI at 51.9. Forex traders can compare this to the Chinese Caixin Composite PMI for June, reported at 53.9, and the Chinese Caixin Composite PMI at 52.5.
The UK S&P Global/CIPS Services PMI for July is predicted at 51.5, and the UK S&P Global/CIPS Composite PMI at 50.7. Forex traders can compare this to the UK S&P Global/CIPS Services PMI for June, reported at 53.7, and the UK S&P Global/CIPS Composite PMI at 52.8.
The Bank of England is predicted to increase interest rates by 25 basis points from 5.00% to 5.25%. Forex traders can compare this to the previous Bank of England meeting, where the UK central bank increased interest rates by 50 basis to 5.00%. Traders should monitor the press release following the announcement for clues about potential changes to monetary policy and the inflation outlook.
The forecast for the GBP/AUD turned bearish after this currency pair surged out of its horizontal support area. Volatility could rise as the Kijun-sen and the Tenkan-sen drift higher as the Ichimoku Kinko Hyo Cloud flatlined with a bearish bias. Traders should also monitor the CCI in extreme overbought territory. This technical indicator began to move lower, and a breakdown below 100 could trigger a sell-off. Can bears regain control over the GBP/AUD and force price action into its horizontal support area from where its rally began? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the GBP/AUD remain inside the or breakdown below the 1.9360 to 1.9455 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.9415
- Take Profit Zone: : 1.9080 – 1.9185
- Stop Loss Level:1.9520
Should price action for the GBP/AUD breakout above 1.9455, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.9520
- Take Profit Zone: 1.9600 – 1.9675
- Stop Loss Level: 1.9455
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