Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Westpac Leading Index for August decreased by 0.4% monthly. Forex traders can compare this to the Australian Westpac Leading Index for July, which contracted by 0.2%.
The Chinese 1-Year Loan Prime Rate for September 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 August, reported at 3.45%, and the Chinese 5-Year Loan Prime Rate reported at 4.20%.
The UK CPI for August rose by 0.3% monthly and 6.7% annualized. Economists predicted an increase of 0.7% and 7.0%. Forex traders can compare this to the UK CPI for July, which contracted by 0.4% monthly and expanded by 6.8% annualized. The UK Core CPI for August rose by 0.1% monthly and 6.2% annualized. Economists predicted an increase of 0.6% and 6.8%. Forex traders can compare this to the UK CPI for July, which accelerated by 0.3% monthly and 6.9% annualized.
The UK PPI Input for August increased by 0.4% monthly and decreased by 2.3% annualized. Economists predicted a flat rise of 0.2% and a drop of 2.7%. Forex traders can compare this to the UK PPI Input for July, which contracted by 0.4% monthly and 3.2% annualized. The UK PPI Output for August rose by 0.2% monthly and contracted by 0.4% annualized. Economists predicted a rise of 0.1% and a contraction of 0.6%. Forex traders can compare this to the UK PPI Output for July, which expanded by 0.2% monthly and dropped by 0.7% annualized. The UK PPI Core Output for August decreased by 0.1% monthly and rose by 1.6% annualized. Forex traders can compare this to the UK PPI Core Output for July, which rose by 0.1% monthly and 2.2% annualized.
The UK RPI for August increased by 0.6% monthly and 9.1% annualized. Economists predicted a rise of 0.8% and 9.3%. Forex traders can compare this to the UK RPI for July, which dropped by 0.6% monthly and accelerated by 9.0% annualized. The UK Core RPI for August rose by 0.5% monthly and 7.8% annualized. Forex traders can compare this to the UK Core RPI for July, which contracted by 0.7% monthly and expanded by 7.9% annualized.
The forecast for the GBP/AUD turned bullish after this currency pair corrected into its horizontal support area. Volatility could rise with the Ichimoku Kinko Hyo Cloud showing a bullish bias, but the Kijun-sen and the Tenkan-sen moving lower. Traders should monitor the CCI in extreme oversold conditions. A breakout above -100 could trigger the next wave of buy orders. Can bulls regain control of 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 1.9080 to 1.9165 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.9130
- Take Profit Zone: : 1.9470 – 1.9560
- Stop Loss Level:1.9030
Should price action for the GBP/AUD breakdown below 1.9080, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.9030
- Take Profit Zone: 1.8850 – 1.8945
- Stop Loss Level: 1.9080
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
