Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian CPI for the fourth quarter increased 1.3% quarterly and 3.5% annualized. Economists predicted an increase of 1.0% quarterly and 3.2% annualized. Forex traders can compare this to the Australian CPI for the third quarter, which increased 0.8% quarterly and 3.0% annualized. The RBA Trimmed Mean CPI for the fourth quarter increased 1.0% quarterly and 2.6% annualized. Economists predicted an increase of 0.7% quarterly and 2.4% annualized. Forex traders can compare this to the RBA Trimmed Mean CPI for the third quarter, which increased 0.7% quarterly and 2.1% annualized. The RBA Weighted Median CPI for the fourth quarter increased 0.9% quarterly and 2.7% annualized. Economists predicted an increase of 0.7% quarterly and 2.3% annualized. Forex traders can compare this to the RBA Weighted Median CPI for the third quarter, which increased 0.7% quarterly and 2.1% annualized.
Australian NAB Business Conditions for December were reported at 8, and Australian NAB Business Confidence at -12. Forex traders can compare this to NAB Business Conditions for November, reported at 12, and Australian NAB Business Confidence reported at 12.
UK Public Sector Net Borrowing for December was reported at £16.100B. Economists predicted a figure of £15.220B. Forex traders can compare this to UK Public Sector Net Borrowing for November, reported at £14.000B.
The forecast for the GBP/AUD remains bullish following a brief correction, supported by its ascending Ichimoku Kinko Hyo Cloud. Short-term volatility may increase, with the Kijun-sen and the Tenkan-sen flat, as underlying bullishness expands. The CCI corrected from extreme overbought territory and crossed below 0, from where it may challenge the -100 mark before bouncing higher. Traders should remain patient and let this unfold before buying this currency pair. Can bulls regain control over the GBP/AUD and force 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 1.8815 to 1.8920 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.8885
- Take Profit Zone: : 1.9075 – 1.9150
- Stop Loss Level:1.8755
Should price action for the GBP/AUD breakdown below 1.8815, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8755
- Take Profit Zone: 1.8600 – 1.8635
- Stop Loss Level: 1.8815
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