Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Input for the third quarter rose by 1.2% quarterly, and the New Zealand Output by 0.8%. Forex traders can compare this to the New Zealand Input for the second quarter, which decreased by 0.2% quarterly, and the New Zealand Output, which increased by 0.2%.
The Singapore Trade Balance for October came in at S$6.524B. Economists predicted a reading of S$5.118B. Forex traders can compare this to the Singapore Balance for September, reported at S$5.118B. Non-oil exports for October rose by 3.4% monthly and decreased by 3.4% annualized. Economists predicted a rise of 1.5% and a drop of 6.5%. Forex traders can compare this to Non-Oil Exports for September, which sky-rocketed by 11.1% monthly and collapsed by 13.2% annualized.
UK Retail Sales for October contracted by 0.3% monthly and 2.7% annualized. Economists predicted a rise of 0.3% and a decrease of 1.5%. Forex traders can compare this to UK Retail Sales for September, which dropped by 1.1% monthly and 1.3% annualized. UK Core Retail Sales for October declined by 0.1% monthly and 2.4% annualized. Economists predicted an increase of 0.4% and a contraction of 1.5%. Forex traders can compare this to UK Core Retail Sales for September, which declined by 1.3% monthly and 1.5% annualized.
The Eurozone Current Account (s.a) for September is predicted at €20.3B. Forex traders can compare this to the Eurozone Current Account (s.a.) for August, reported at €27.7B.
The Final Eurozone CPI for October is predicted to rise by 0.1% monthly and 2.9% annualized. Forex traders can compare this to the Eurozone CPI for September, which rose by 0.3% monthly and 4.3% annualized. The Final Eurozone Core CPI for October is predicted to expand by 0.2% monthly and 4.2% annualized. Forex traders can compare this to the Eurozone Core CPI for September, which accelerated by 0.2% monthly and 4.5% annualized. The Final Eurozone Harmonized Core CPI for October is predicted to rise 0.2% monthly and 5.0% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for September, which expanded 0.2% monthly and 5.5% annualized.
US Housing Starts for October are predicted at 1,345K starts and Building Permits at 1,450K permits. Forex traders can compare this to US Housing Starts for September, reported at 1,358K starts, and Building Permits at 1,471K permits.
The forecast for the XAU/USD remains cautiously bullish as a safe-haven investment. After the Ichimoku Kinko Hyo Cloud completed a bullish crossover, it could gradually resume its uptrend and lead this precious metal to a new all-time high. Volatility may rise with the Kijun-sen drifting higher and the Tenkan-sen flat moving lower. Traders should also monitor the CCI following its double breakout from extreme oversold territory and above zero. This technical indicator has plenty of upside potential to lead price action higher. Can bulls maintain control over the XAU/USD and push gold into its horizontal resistance area?
The New Zealand Performance of Services Index for January came in at 52.1, and the New Zealand Performance of Composite Index was at 50.0. Forex traders can compare this to the New Zealand Performance of Services Index for December, reported at 48.8, and the New Zealand Performance of Composite Index at 46.9.
The Preliminary Chinese Current Account for the fourth quarter came in at $55.2B. Forex traders can compare this to the Chinese Current Account for the third quarter, reported at $62.8B.
Japanese Machine Orders for December rose 2.7% monthly and decreased 0.7% annualized. Economists predicted an increase of 2.5% and a contraction of 1.4%. Forex traders can compare this to Japanese Machine Orders for November, which dropped by 4.9% monthly and 5.0% annualized.
The Canadian Industrial Product Price Index for January is predicted to decrease by 0.1% monthly, and the Canadian Raw Materials Price Index is predicted to increase by 0.7% monthly. Forex traders can compare this to the Canadian Industrial Product Price Index for December, which contracted by 1.5% monthly, and to the Canadian Raw Materials Price Index, which decreased by 4.9% monthly.
The trading week starts quietly on the economic data front, and traders could focus on the upward surprises in the US inflation data. Chinese markets returned from the one-week New Year celebrations, but US markets enjoyed a long weekend and will not start trading until tomorrow. It will result in thin trading volumes once UK markets close in the afternoon. The German Buba Monthly Report may inject volume and volatility after its release in a potentially quiet trading session that could extend trends in currency pairs from last week or result in choppy sideways trading.
The forecast for gold remains bullish after this precious metal moved higher for the past four trading sessions and into a previous horizontal support area. It now trades above its flat Tenkan-sen but below its flat Kijun-sen, following a bearish crossover. The Ichimoku Kinko Hyo Cloud presents the next resistance level following a bearish crossover, with the Senkou Span A drifting lower and the Senkou Span B flat. Traders should also monitor the CCI after it recorded a lower low in extreme oversold territory followed by a breakout. A move above zero by this technical indicator could spark the next leg higher. Can bulls regain control over the XAU/USD and drive price action into its horizontal resistance area and fresh all-time highs?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 2,014.00 to 2,039.00 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 2,022.00
- Take Profit Zone: 2,124.00 – 2,147.00
- Stop Loss Level: 1,995.00
Should price action for XAU/USD breakdown below 2,014.00, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,995.00
- Take Profit Zone: 1,962.00 – 1,973.00
- Stop Loss Level: 2,014.00
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