AUD/CHF Appears Bullish amid Better than Expected Australian Building Approvals`

Australia – Building Approvals

Yesterday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure, which measures the changes in the number of approvals of new buildings.

Since a build permit indicates new construction work, it suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options traders consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.

Last month, the building approvals figure went down by -9.5% and this month the forecast was set at a modest 1.8% increase. However, the actual figure came out slightly better than what the market was expecting, at 2.2% increase.

Switzerland – Retail Sales

Later, at GMT 8:15 a.m., the Swiss Federal Statistical Office released the year-over-year retail sales figure, which measures the change in the total value of sales made by the retail sector in the country. However, this figure is adjusted for inflation in order to offer an accurate overview.

Binary options investors consider the Swiss retail sales figure to be one of the main gauges of consumer confidence, which makes up the majority of the overall economic activity in Switzerland. Since consumer spending is directly correlated with consumer confidence, it can signal future economic activity as well.

Last month, the value of Swiss retail sales decreased by -0.6% and the forecast for May was set at an increase of 0.2%. The actual figure came exactly same as what the market was expecting, at 0.2% increase.

Trade Recommendation for the AUD/CHF

AUDCHFDaily

Since reaching the low around 0.6530 in August, the AUD/CHF price has gradually come back to the major resistance level near 0.7100 over the last few weeks.

Although the pair tested the 0.7100 level earlier on October 12, it failed to penetrate above this. Later, on October 26, the AUD/CHF price finally penetrated and closed above this resistance zone, but a lack of bullish momentum failed to start a bullish trend.

Today, the AUD/CHF price has so far engulfed yesterday’s daily bar, indicating that it may form a bullish outside bar. Interestingly, the high of the bar has failed to go above 0.7117, which is the closing price of October 26.

Also, as the Australian building approvals figure came out better than expected, the fundamental outlook for the AUD/CHF would likely remain bullish this week.

Under the circumstances, it would be recommended that traders consider placing a CALL order for the AUD/CHF with their binary options brokers, once the price closes above the resistance around 0.7117. However, if you are a conservative trader, consider placing the CALL order after the price closes above last week’s high, which is at 0.7140.

Recommended Broker: Tradorax

Tagged with:

Leave a Comment

All content, design, and layout are Copyright © 2013 - 2016. All Rights Reserved. USBinaryOptions.com is owned and operated by AD Entertainment, a company registered in England / Wales ( United Kingdom ).
About Us - Sitemap - Contact Us - Disclaimer- Terms & Conditions