AUD/USD Bearishness Set to Prevail Despite Robust Australian Business Confidence

AUD/USD – Technical Analysis for US Binary Options Brokers

Australia – National Australia Bank (NAB) Limited Business Confidence Index

On Tuesday, at GMT 1:30 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, US binary options brokers 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 9, an improvement after coming at 7 in the previous month. If the trend continues, it would likely to have a bullish effect on the Australian Dollar.

United States – Core Consumer Price Index

On Friday, at 12:30 p.m., the US Bureau of Labor Statistics will release the month-over-month Core Consumer Price Index (CPI) data.

Since the Core CPI measures the changes in the price of goods and services but excludes the volatile food and energy prices, binary options investors consider this data to be more important compared to the CPI figure.

Last month, based on the US Core CPI, there were around 0.0% inflation in the economy. This month, the forecast is set at 0.2% inflation.

AUD/USD Forecast

AUD/USD Analysis for US binary options brokers - August 7

After climbing around 740 pips since May 9, 2017, the AUD/USD found a strong resistance near the 0.8040 level last week. Consequently, the AUD/USD formed a bearish pin bar and so far, the price has come down by around 175 pips over the last week. Currently, the AUD/USD is trading just above the support around 0.7875 level.

The Australian NAB business confidence index figure has been performing well over the last few months, however, the US core inflation is expected to increase by 0.2% compared to a flat 0.0% last month. We believe it would likely set a bearish fundamental outlook for the AUD/USD this week. Therefore, the price penetrates and closes below the support around 0.7875 level, 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 0.7875.

Top US Binary Options Brokers To trade AUD / USD

Top US Broker: BinaryMate

US Regulated Platform: NADEX

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