AUD/CHF Likely Remain Bearish This Week amid Slower Rate of Building Approvals in Australia

Australia – Building Approvals

On Wednesday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release 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 up by 4.2% and this month the forecast was set at a modest 1.9% decline.

Switzerland – KOF Economic Barometer

Later in the morning, at GMT 7:00 a.m., the KOF Economic Research Agency will release its economic barometer index, which measures the changes in the level of a composite index.

Since the KOF develops this composite index by analyzing 219 different economic indicators, binary options investors consider this to be an important fundamental indicator regarding the Swiss economy.

In August, the KOF economic barometer index reading came out at 100.7 and the forecast for September is currently set at a slightly higher reading, at 101.2.

Trade Recommendation for the AUD/CHF

AUDCHFDaily

After falling around 775 pips in August, the AUD/CHF price rebounded over the last few weeks. Over the last month, the AUD/CHF price remained mostly range bound within the 0.6700 and the 0.6935 levels.

However, last week, the AUD/CHF formed a bullish pin bar, and the price penetrated above the high of this pin bar. But, as the pair was ranging, the lack of bullish pressure from buyers kept the price below the high of the pin bar for the last several days.

As the Australian building approvals figure is expected to grow at a slower pace this month compared to the previous month, and the KOF economic barometer reading in Switzerland is expected to increase to 101.2 from 100.7, the fundamental outlook for the AUD/CHF would remain bearish this week.

Regardless of the pin bar, if the AUD/CHF price penetrates below the low of last week, it would likely attract additional bearish momentum in the market.

Under the circumstances, it would be recommended that traders consider placing a PUT order for the AUD/CHF with their binary options brokers, once the price closes below the 0.6750 level.

Recommended Broker: Porter Finance

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