Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Building Approvals for September increased by 4.4% monthly, and Private House Approvals rose by 2.2% monthly. Forex traders can compare this to Australian Building Approvals for August, which dropped 3.9% monthly, and Private House Approvals, which expanded 2.3% monthly.
The Australian Trade Balance for September came in at A$4,609M. Economists predicted a figure of A$5.240M. Forex traders can compare this to the Australian Trade Balance for August, reported at A$5,284M. Exports for September dropped by 4.3% monthly, and imports decreased by 3.1% monthly. Forex traders can compare this to exports for August, which contracted by 0.6% monthly, and imports, which decreased by 0.2% monthly.
The Chinese Trade Balance for September came in at $95.72B. Economists predicted a figure of $73.50B. Forex traders can compare this to the Chinese Trade Balance for August, reported at $81.71B. Exports for September surged by 12.7% annualized, and Imports decreased by 2.3% annualized. Economists predicted a rise of 5.0% and contraction of 1.5%. Forex traders can compare this to Exports for August, which rose by 2.4% annualized, and Imports, which increased by 0.3% annualized.
The UK Halifax House Price Index for October increased by 0.2% monthly and 3.9% tri-monthly annualized. Economists predicted a rise of 0.2% monthly and 4.2% tri-monthly annualized. Forex traders can compare this to the UK Halifax House Price Index for September, which increased by 0.3% monthly and 4.6% tri-monthly annualized.
The Bank of England is predicted to lower interest rates by 25 basis points to 4.75%, with eight votes in favor and one vote preferring to leave interest rates unchanged at 5.00%. Traders should monitor the press release following the announcement for clues about potential changes to monetary policy and the outlook on inflation.
The forecast for the GBP/AUD turned cautiously bullish after this currency pair corrected into its horizontal support area. Short-term volatility may increase with price action trading above its flat Kijun-sen but below its flat Tenkan-sen. Medium-term bullishness continues to rise following a bullish crossover of the ascending Senkou Span A above the ascending Senkou Span B, which should widen the Ichimoku Kinko Hyo Cloud. Traders should also monitor the CCI following its double breakdown from extreme overbought territory and below zero. This technical indicator may challenge extreme oversold levels before reversing. Can bulls regain 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 1.9460 to 1.9540 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.9500
- Take Profit Zone: : 1.9730 – 1.9790
- Stop Loss Level:1.9410
Should price action for the GBP/AUD break out above 1.9650, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.9410
- Take Profit Zone: 1.9300 – 1.9360
- Stop Loss Level: 1.9460
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