Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Westpac Leading Index for November rose by 0.1% monthly. Forex traders can compare this to the Australian Westpac Leading Index for October, which was flat at 0.0%.
The Chinese 1-Year Loan Prime Rate for December was reported at 3.45%, and the Chinese 5-Year Loan Prime Rate at 4.20%. Economists predicted a figure of 3.45% and 4.20%. Forex traders can compare this to the previous Chinese 1-Year Loan Prime Rate for November, reported at 3.45%, and the Chinese 5-Year Loan Prime Rate reported at 4.20%.
The UK CPI for November decreased 0.2% monthly and rose 3.9% annualized. Economists predicted an increase of 0.1% and 4.4%. Forex traders can compare this to the UK CPI for October, which was flat at 0.0% monthly and expanded by 4.6% annualized. The UK Core CPI for November contracted by 0.3% monthly and surged by 5.1% annualized. Economists predicted an increase of 0.2% and 5.6%. Forex traders can compare this to the UK CPI for October, which accelerated by 0.3% monthly and 5.7% annualized.
The UK PPI Input for November decreased by 0.3% monthly and 2.6% annualized. Economists predicted a contraction of 0.8% and 3.3%. Forex traders can compare this to the UK PPI Input for October, which expanded by 0.4% monthly and contracted by 2.6% annualized. The UK PPI Output for November decreased by 0.1% monthly and 0.2% annualized. Economists predicted a contraction of 0.2% and 0.5%. Forex traders can compare this to the UK PPI Output for October, which expanded by 0.3% monthly and dropped 0.3% annualized. The UK PPI Core Output for November was flat at 0.0% monthly and rose 0.2% annualized. Forex traders can compare this to the UK PPI Core Output for October, which expanded by 0.1% monthly and 0.4% annualized.
The UK RPI for November decreased by 0.1% monthly and increased by 5.3% annualized. Economists predicted a rise of 0.2% and 5.7%. Forex traders can compare this to the UK RPI for October, which contracted by 0.2% monthly and accelerated by 6.1% annualized.
The forecast for the GBP/AUD is cautiously bullish after this currency pair corrected into its horizontal support area. Volatility could rise with the Tenkan-sen and the Kijun-sen descending following a bearish crossover. The Ichimoku Kinko Hyo Cloud narrowed and flatlined, suggesting bulls and bears fight for control. Traders should also monitor the CCI in extreme oversold territory. A breakout above 100 could provide bulls with an edge and start a reversal rally. Can bulls regain control over the GBP/AUD and pressure price action into its horizontal resistance area? 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 breakout above the 1.8685 to 1.8770 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.8725
- Take Profit Zone: : 1.8965 – 1.9035
- Stop Loss Level:1.8600
Should price action for the GBP/AUD breakdown below 1.8685, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8600
- Take Profit Zone: 1.8465 – 1.8500
- Stop Loss Level: 1.8685
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