Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Private Sector Credit for December increased by 0.3% monthly and 8.3% annualized. Forex traders can compare this to Australian Private Sector Credit for November, which rose 0.5% monthly and 8.9% annualized. Australian Housing Credit for December increased by 0.3% monthly. Forex traders can compare this to Australian Housing Credit for November, which expanded by 0.4% monthly.
Australian Retail Sales for December plunged 3.9% monthly. Economists predicted a decrease of 0.3% monthly. Forex traders can compare this to Australian Retail Sales for November, which rose 1.4% monthly.
The Chinese Non-Manufacturing PMI for January came in at 54.4, and the Chinese Manufacturing PMI at 50.1. Economists predicted a figure of 52.0 and 49.8. Forex traders can compare this to the Chinese Non-Manufacturing PMI for December, reported at 41.6, and the Chinese Manufacturing PMI, at 47.0. The Chinese Composite PMI for January came in at 52.9. Forex traders can compare this to the Chinese Composite PMI for December, reported at 42.6.
Chinese Industrial Profits for January decreased by 4.0% annualized and by 4.0% year-to-date, ending in January. Forex traders can compare this to Chinese Industrial Profits for December, which dropped 3.6% annualized, and 3.6% year-to-date, ending in December.
UK Mortgage Approvals for December are predicted at 45.00K. Forex traders can compare this to UK Mortgage Approvals for November, reported at 46.08K.
UK Net Consumer Credit for December is predicted at £1.050B, and Net Mortgage Lending at £4.000B. Forex traders can compare this to UK Net Consumer Credit for November, reported at £1.507B, and Net Mortgage Lending at £4.360B. UK Net Lending to Individuals for December is predicted at £5.100B. Forex traders can compare this to UK Net Lending to Individuals for November, reported at £5.900B.
UK M4 Money Supply for December is predicted to increase by 1.2% monthly. Forex traders can compare this to UK M4 Money Supply for November, which decreased by 1.6% monthly.
The forecast for the GBP/AUD turned bullish after this currency pair bounced off its horizontal support area. Short-term volatility could increase after the descending Kijun-sen crossed below the flat Tenkan-sen. Adding to the bullish outlook is the narrowing Ichimoku Kinko Hyo Cloud, where the ascending Senkou Span A closes in on the flat Senkou Span B. A bullish crossover could lead the next leg higher. Traders should also monitor the CCI after this technical indicator created a higher low in extreme oversold territory followed by a breakout. A push above zero could accelerate the current advance. Can bulls gather momentum and pressure the GBP/AUD 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 1.7475 to 1.7580 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7550
- Take Profit Zone: : 1.7860 – 1.7960
- Stop Loss Level:1.7430
Should price action for the GBP/AUD breakdown below 1.7475, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7430
- Take Profit Zone: 1.7275 – 1.7315
- Stop Loss Level: 1.7475
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