AUD/USD – Technical Analysis for US binary Options
Australia – National Australia Bank (NAB) Limited Business Confidence Index
On Tuesday, at GMT 12:30 a.m., the National Australia Bank (NAB) Limited will release its monthly business confidence index figure. This figure measures the level of a diffusion index based on a survey of 350 businesses in Australia.
The survey asks respondents to rate the current business environment in Australia. Since businesses are the first to react to changing business conditions, the level of their sentiment regarding optimism and business confidence, binary options traders consider it as a leading indicator of the overall economic health in the coming months.
Last month, the NAB business confidence index reading came out at 5, after coming at 12 in the previous month. If the trend continues, it would likely to have a bearish effect on the Australian Dollar.
United States – Producer Price Index
On Thursday, at GMT 12:30 p.m., the US Department of Labor will release the Producer Price Index (PPI) figure, which measures the changes in the price of products and services bought by manufacturers and service providers in the country.
Since the higher cost of production is usually passed on to the consumers, a rise in the producer price index indicates future inflation. Hence, this data is vital for binary option trading as it is used by binary options investors as a leading indicator of the overall US economy.
Last month, the US month-over-month PPI increased by 0.2%, indicating inflationary pressure on the economy and the forecast for this month is set at an additional 0.4% increase.
Since breaking below the uptrend line on September 18, 2017, the AUD/USD turned bearish and the price fell by around 250 pips. However, as soon as the pair reached the 0.7740 level, it found a strong support last week.
As the Australian NAB Business Confidence went down last month and there is a possibility that it will go down once again this month, but the United States Producer Price Index is estimated to increase by an additional 0.4%, we believe it would likely set a bearish fundamental outlook for the AUD/USD this week. Therefore, if the AUD/USD closes below the support near 0.7740, it would likely attract additional bearish momentum in the market.
Hence, US binary options traders should look out for trading opportunities below this major support level around 0.7740.
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