Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Electronic Retail Card Spending for May dropped by 1.7% monthly and rose by 3.3% annualized. Forex traders can compare this to New Zealand Electronic Retail Card Spending for April, which increased by 0.4% monthly and 6.4% annualized.
The Japanese PPI for May decreased by 0.7% monthly and increased by 5.1% annualized. Economists predicted a contraction of 0.2% and a rise of 5.5%. Forex traders can compare this to the Japanese PPI for April, which accelerated by 0.3% monthly and 5.9% annualized.
Japanese Preliminary Machine Tool Orders for May collapsed by 22.2% annualized. Forex traders can compare this to Japanese Machine Tool Orders for April, which plunged by 12.7% annualized.
Chinese New Yuan Loans for May are predicted at CNY 1,600.0B and Chinese Total Social Financing at CNY 2,000.0B. Forex traders can compare this to Chinese New Yuan Loans for April, reported at CNY 718.8B, and Chinese Total Social Financing at CNY 1,220.0B. Chinese M2 Money Supply for May is predicted to increase by 12.1% and Outstanding Loan Growth by 11.6%. Forex traders can compare this to the Chinese M2 Money Supply for April, which rose by 12.4%, and Outstanding Loan Growth by 11.8%.
The US Monthly Budget Statement for May is predicted at -$236.0B. Forex traders can compare this to the US Monthly Budget Statement for April, reported at $176.0B.
Traders get a quiet start to the trading week from an economic release perspective, but the focus remains on Wednesday and the US Federal Reserve interest rate decision. Markets expect the FOMC to pause its interest rate increases, but consensus shifted to a resumption after the hawkish pause. Core inflation is sticky, and the labor market continues to outperform. After the RBA surprised markets during its previous meetings, traders should not discount the chance of an interest rate hike by the US Fed. The ECB is expected to increase interest rates on Thursday.
The forecast for gold turned cautiously bullish after price action stabilized inside of its upward-shifting Ichimoku Kinko Hyo Cloud. Volatility could rise this week with the Tenkan-sen and the Senkou Span B ascending and the Kijun-sen and the Senkou Span A descending. Traders should also monitor the CCI following its breakout from extreme oversold territory, which created a positive divergence. The breakout above the zero barrier added to bullishness, and this technical indicator has plenty of upside potential. Can bulls capitalize on recent strength to overpower bears and drive price action in gold into its horizontal resistance area above 2,000? 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 1,947.10 to 1,972.90 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,958.35
- Take Profit Zone: 2,048.00 – 2,077.40
- Stop Loss Level: 1,926.50
Should price action for XAU/USD breakdown below 1,947.10, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,926.50
- Take Profit Zone: 1,885.50 – 1,907.10
- Stop Loss Level: 1,947.10
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
