Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Construction Index for May came in at -6.6. Forex traders can compare this to the Australian AiG Construction Index for April, reported at -12.4. The AiG Manufacturing Index came in at -5.1, and the AiG Industry Index at -10.9. Forex traders can compare this to the AiG Manufacturing Index for April, reported at -20.2, and the AiG Industry Index at -20.1.
The Australian GDP for the first quarter expanded 0.2% quarterly and 2.3% annualized. Economists predicted an increase of 0.3% and 2.4% annualized. Forex traders can compare this to the Australian GDP for the fourth quarter, which rose 0.6% quarterly and 2.6% annualized. Capital Expenditure for the first quarter increased by 1.8% quarterly, the Chain Price Index rose 1.8% quarterly, and Final Consumption expanded by 0.2% quarterly. Economists predicted a drop of 5.6% and a rise of 4.3% and 1.4%. Forex traders can compare this to Capital Expenditure for the fourth quarter, which decreased by 1.4% quarterly, the Chain Price Index, which rose 0.6% quarterly, and Final Consumption, which expanded by 0.4% quarterly.
The Chinese Trade Balance for May came in at $65.81B. Economists predicted a figure of $92.00B. Forex traders can compare this to the Chinese Trade Balance for April, reported at $90.21B. Exports for May dropped by 7.5% annualized and Imports by 4.5% annualized. Economists predicted a decrease of 0.4% and 8.0%. Forex traders can compare this to Exports for April, which surged by 8.5% annualized, and Imports, which dropped by 7.9% annualized.
The UK Halifax House Price Index for May came in flat at 0.0% monthly and decreased by 1.0% tri-monthly annualized. Economists predicted a flat reading of 0.0% monthly and a decrease of 0.9% tri-monthly annualized. Forex traders can compare this to the UK Halifax House Price Index for April, which contracted 0.4% monthly and rose 0.1% tri-monthly annualized.
The forecast for the GBP/AUD turned cautiously bullish after this currency pair corrected into its upward-shifting Ichimoku Kinko Hyo Cloud. Volatility may increase with the descending Tenkan-sen in the process of moving below the descending Kijun-sen as bulls and bears wrestle for directional control. Traders should also monitor the CCI after plunging into extreme oversold territory and look for signs of stabilization. A breakout above -100 could tip power into the bullish camp. Can bulls take control over the GBP/AUD and push 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 1.8540 to 1.8660 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.8590
- Take Profit Zone: : 1.9060 – 1.9180
- Stop Loss Level:1.8460
Should price action for the GBP/AUD breakdown below 1.8540, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8460
- Take Profit Zone: 1.8170 – 1.8245
- Stop Loss Level: 1.8540
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