Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Electronic Retail Card Spending for July was flat at 0.0% monthly and rose by 2.2% annualized. Economists predicted a flat reading of 0.0% and an increase of 9.8%. Forex traders can compare this to New Zealand Electronic Retail Card Spending for June, which expanded by 0.9% monthly and 4.2% annualized.
Japanese Money Stock M2 for July increased by 2.4% annualized, and Japanese M3 Money Supply came in at ¥2,112.5T. Forex traders can compare this to Japanese Money Stock M2 for June, which rose by 2.6% annualized, and Japanese M3 Money Supply, reported at ¥2,111.1T.
The Chinese CPI for July rose by 0.2% monthly and decreased by 0.3% annualized. Economists predicted a drop of 0.1% and 0.4%. Forex traders can compare this to the CPI for June, which contracted by 0.2% monthly and was flat at 0.0% annualized. The Chinese PPI for July dropped by 4.4% annualized. Economists predicted a contraction of 4.1%. Forex traders can compare this to the Chinese PPI for June, which decreased by 5.4% annualized.
New Zealand Inflation Expectations for the third quarter increased by 2.83% quarterly. Forex traders can compare this to New Zealand Inflation Expectations for the second quarter, which rose 2.79% quarterly.
Japanese Preliminary Machine Tool Orders for July collapsed by 21.7% annualized. Forex traders can compare this to Japanese Machine Tool Orders for June, which plunged by 22.2% annualized.
Spanish Consumer Confidence for July is predicted at 85.7. Forex traders can compare this to Spanish Consumer Confidence for June, reported at 92.4.
US Crude Oil Inventories Change for the week ending August 4th are predicted at 0.567M. Traders can compare this to US Crude Oil Inventories Change for the week ending July 28th, reported at -17.049M. US Gasoline Inventories Change for the week ending August 4th are predicted at -0.008M, and US Distillate Stocks Change at 0.006M. Traders can compare this to US Gasoline Inventories Change for the week ending July 28th, reported at 1.480M, and US Distillate Stocks Change at -0.796M.
The forecast for gold remains bullish after this precious metal has stabilized at the bottom of its Ichimoku Kinko Hyo Cloud. Volatility could rise with a minor bearish bias as the descending Tenkan-sen approaches the flat Kijun-sen, where a false bearish crossover could precede the next leg up. Traders should also monitor the CCI in extreme oversold territory with an upward drift. A breakout above -100 may trigger a reversal of the sell-off. Can bulls regain control over gold 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 XAU/USD remain inside the or breakout above the 1,921.70 to 1,937.90 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,930.30
- Take Profit Zone: 1,983.20 – 2,000.00
- Stop Loss Level: 1,902.60
Should price action for XAU/USD breakdown below 1,921.70, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,902.60
- Take Profit Zone: 1,885.65 – 1,892.90
- Stop Loss Level: 1,921.70
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