Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese National CPI for August increased 0.4% monthly and 3.0% annualized. Forex traders can compare this to the Japanese National CPI for July, which rose 0.5% monthly and 2.6% annualized. The Japanese National Core CPI for August increased 2.8% annualized. Forex traders can compare this to the Japanese National Core CPI for July, which rose 2.4% annualized.
The Chinese 1-Year Loan Prime Rate for September was reported at 3.65%, and the Chinese 5-Year Loan Prime Rate was at 4.30%. Economists predicted a figure of 3.65% and 4.30%. Forex traders can compare this to the previous Chinese 1-Year Loan Prime Rate for August, reported at 3.65% and to the Chinese 5-Year Loan Prime Rate reported at 4.30%.
The German PPI for August surged 7.9% monthly and 45.8% annualized. Economists predicted an increase of 1.6% and 37.1%. Forex traders can compare this to the German PPI for July, which rose 5.3% monthly and 37.2% annualized.
The Swiss Trade Balance for August came in at CHF3.424B. Forex traders can compare this to the Swiss Trade Balance for July, reported at CHF3.522B.
US Housing Starts for August are predicted at 1,445K starts, and Building Permits at 1,610K permits. Forex traders can compare this to US Housing Starts for July, reported at 1,446K starts, and Building Permits at 1,685K permits.
The Canadian CPI for August is predicted to decrease 0.1% monthly and increase 7.3% annualized. Forex traders can compare this to the Canadian CPI for July, which rose 0.1% monthly and 7.6% annualized. The Canadian Core CPI for August is predicted to rise 5.5% annualized. Forex traders can compare this to the Canadian Core CPI for July, which surged 6.1% annualized. The Core CPI-Median for August is predicted to expand by 5.0% annualized and the Core CPI-Trimmed by 5.5% annualized. Forex traders can compare this to the Core CPI-Median for July, which rose 5.0% annualized, and to the Core CPI-Trimmed by 5.4% annualized.
The forecast for gold remains cautiously bullish after this precious metal corrected into its horizontal support area. Adding to the positive outlook is the Senkou Span B of the Ichimoku Kinko Hyo Cloud, which began to flatline, confirmed by the sideways trending Tenkan-sen. Volatility could increase this week as the Kijun-sen contracts and bulls and bears face off at key support. Traders should also monitor the CCI in extreme oversold territory as this technical indicator moves higher and approaches a breakout, which could provide a price action catalyst. Can bulls withstand bearish attacks and pressure 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 1,654.00 to 1,688.70 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,670.00
- Take Profit Zone: 1,765.00 – 1,780.00
- Stop Loss Level: 1,625.70
Should price action for XAU/USD breakdown below 1,654.00, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,625.70
- Take Profit Zone: 1,560.70 – 1,577.20
- Stop Loss Level: 1,654.00
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