Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian TD Securities Inflation for January increased by 0.9% monthly. Forex traders can compare this to Australian TD Securities Inflation for December, which rose 0.2% monthly. Australia is one of the first countries feeling the impact of the Chinese re-opening of their economy, and the rise in inflation is a sign of what traders should expect throughout 2023 until a global recession can dampen inflationary pressures. Otherwise, a long period of stagflation could manifest itself, making matters worse for consumers and businesses.
Australian Retail Sales for December plunged 3.9% monthly. Economists predicted a contraction of 0.6% monthly. Forex traders can compare this to Australian Retail Sales for November, which rose 1.7% monthly. Australian Retail Sales excluding Inflation for the fourth quarter decreased by 0.2% quarterly. Economists predicted a drop of 0.6% quarterly. Forex traders can compare this to Australian Retail Sales excluding Inflation for the third quarter, which increased by 0.3% quarterly.
German Factory Orders for December are predicted to increase by 2.0% monthly. Forex traders can compare this to German Factory Orders for November, which plunged by 5.3% monthly.
The UK Construction PMI for January is predicted at 49.6. Forex traders can compare this to the UK Construction PMI for December, reported at 48.8.
Eurozone Sentix Investor Confidence for February is predicted at -12.8. Forex traders can compare this to Eurozone Sentix Investor Confidence for January, reported at -17.5.
Eurozone Retail Sales for December are predicted to drop by 2.5% monthly and by 2.7% annualized. Forex traders can compare this to Eurozone Retail Sales for November, which increased by 0.4% monthly and decreased by 2.8% annualized.
Spanish Consumer Confidence for January is predicted at 59.3. Forex traders can compare this to Spanish Consumer Confidence for December, reported at 68.0.
The Canadian Ivey PMI for January is predicted at 42.3. Forex traders can compare this to the Canadian Ivey PMI for December, reported at 33.4.
The forecast for the XAU/USD turned bullish after the horizontal resistance area rejected this precious metal, forcing it into a healthy correction. Confirming ongoing bullishness is the rising Kijun-sen and the ascending Ichimoku Kinko Hyo Cloud. Short-term volatility could increase until the Kijun-sen completes a bullish crossover above the flat Tenkan-sen. Traders should also monitor the CCI, which plunged into extreme oversold territory. It has stabilized and begun drifting higher. A breakout would increase bullish pressure and drive gold toward its next psychological resistance level of 2,000. Can bulls maintain control over price action and push the XAU/USD 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 1,859.90 to 1,886.30 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,877.25
- Take Profit Zone: 1,959.60 – 2,000.00
- Stop Loss Level: 1,835.00
Should price action for XAU/USD breakdown below 1,859.90, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,835.00
- Take Profit Zone: 1,773.20 – 1,799.00
- Stop Loss Level: 1,859.90
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