Economic data released out of Asia continues to paint a picture of a slowing global economy. The New Zealand ANZ Truckometer Heavy Index posted a contraction which suggests less cargo is being moved due to a lack of demand, UK BRC Like-for-Like Sales decreased once again and Australian consumer confidence eased while Japan reported a decrease in labor cash earnings. Gold prices remained stable at its new support level which embraces the 1,400 level on each side. Subscribe to the PaxForex Daily Fundamental Analysis and allow our expert analysts to guide you through financial markets, yielding over 500 pips in monthly profits.
The bright spot, once again, was Switzerland which reported a decrease in its unemployment rate and traders are now awaiting retail sales data out of Italy as well as the US NFIB Small Business Optimism Index. Adding bullish pressures to gold is the rise in tensions between Japan and South Korea which could further accelerate the global economic slowdown. Will bulls push price action back above 1,400 from where it can extend its rally or are bears going to force a breakdown below support? Today’s fundamental analysis will look at both scenarios.
Here are the key factors to keep in mind today for Gold trades:
- New Zealand ANZ Truckometer Heavy Index: The New Zealand ANZ Truckometer Heavy Index for June decreased by 3.5% monthly. Forex traders can compare this to the New Zealand ANZ Truckometer Heavy Index for May which increased by 0.6% monthly.
- UK BRC Like-for-Like Sales: UK BRC Like-for-Like Sales for June decreased by 1.6% annualized. Economists predicted a decrease of 1.5% annualized. Forex traders can compare this to UK BRC Like-for-Like Sales for May which decreased by 3.0% annualized.
- Australian ANZ Roy Morgan Weekly Consumer Confidence Index: The Australian ANZ Roy Morgan Weekly Consumer Confidence Index for the week of July 7th was reported at 117.6. Forex traders can compare this to the Australian ANZ Roy Morgan Weekly Consumer Confidence Index for the week of June 30th which was reported at 118.9.
- Japanese Labor Cash Earnings and Japanese Real Cash Earnings: Japanese Labor Cash Earnings for May decreased by 0.2% annualized and Japanese Real Cash Earnings decreased by 1.0% annualized. Economists predicted a decrease of 0.6% and of 1.5%. Forex traders can compare this to Japanese Labor Cash Earnings for April which decreased by 0.3% annualized and to Japanese Real Cash Earnings which decreased by 1.4% annualized.
- Japanese Money Stock M2+CD and Japanese Money Stock M3: Japanese Money Stock M2+CD for June increased by 2.3% annualized and Japanese Money Stock M3 increased by 2.0% annualized. Economists predicted an increase of 2.6% and of 2.3%. Forex traders can compare this to Japanese Money Stock M2+CD for May which increased by 2.6% annualized and to Japanese Money Stock M3 which increased by 2.3% annualized.
- Australian NAB Business Conditions and Australian NAB Business Confidence: Australian NAB Business Conditions for June were reported at 3 and Australian NAB Business Confidence at 2. Forex traders can compare this to NAB Business Conditions for May which were reported at 1 and to Australian NAB Business Confidence which was reported at 7.
- Swiss Unemployment Rate: The Swiss Unemployment Rate for June was reported at 2.1% and the Seasonally Adjusted Unemployment Rate was reported at 2.3%. Economists predicted a rate of 2.2% and of 2.4%. Forex traders can compare this to the Swiss Unemployment Rate for May which was reported at 2.3% and the Seasonally Adjusted Unemployment Rate which was reported at 2.4%.
- Italian Retail Sales: Italian Retail Sales for May are predicted to increase by 0.2% monthly and by 3.8% annualized. Forex traders can compare this to Italian Retail Sales for April which decreased by 0.3% monthly and which increased by 4.2% annualized.
- US NFIB Small Business Optimism Index: The US NFIB Small Business Optimism Index for June is predicted at 103.1. Forex traders can compare this to the NFIB Small Business Optimism Index for May which was reported at 105.0.
- Canadian Housing Starts and Building Permits: Canadian Housing Starts for June are predicted at 210.0K. Forex traders can compare this to Canadian Housing Starts for May which were reported at 202.3K. Canadian Building Permits for May are predicted to decrease by 2.5% monthly. Forex traders can compare this to Canadian Building Permits for April which increased by 14.7% monthly.
- US JOLTS Job Openings: US JOLTS Job Openings for May a predicted at 7.473M. Forex traders can compare this to US JOLTS Job Openings for April which were reported at 7.449M.
Should price action for Gold remain inside the or breakout above the 1,381.60 to 1,411.50 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,395.60
- Take Profit Zone: 1,526.60 – 1,539.90
- Stop Loss Level: 1,375.00
Should price action for Gold breakdown below 1,381.60 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,375.00
- Take Profit Zone: 1,319.65 – 1,341.10
- Stop Loss Level: 1,395.60
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