AUD/USD Bearish Momentum Would Continue if Price Breaks the Support Around 0.7050

Australia – ANZ Job Advertisements

Today, at GMT 12:30 a.m., Australia and New Zealand Banking Group (ANZ) released its monthly Job Advertisement figure, which measures the changes in the number of advertised jobs in key Australian cities through the major daily newspapers and web portals.

Since job advertisements usually lead to hiring employees, US binary options traders consider this data from ANZ to be a leading indicator of the employment trend in the country. The ANZ Job Advertisement figure usually has greater impact on the Australian Dollar when it is released before the Australian government’s official employment data.

Last month, the ANZ Job Advertisement figure declined by 0.1%, and this month it grew by 1%, indicating that employers are looking to hire more workers in the coming months.

United States – Unemployment Claims

On Thursday, at GMT 1:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.

Binary options investors consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.

Last week, the US unemployment claims figure came out at 285,000 and the forecast for this week is currently set at a slightly higher figure, at 287,000.

Trade Recommendation for the AUD/USD

AUDUSDDaily

The AUD/USD price has gone up since January 20, and formed a strong uptrend line. However, last week, after reaching near resistance around the 0.7250 level, the AUD/USD price retraced sharply and closed below the uptrend line.

Although the bearish momentum appeared strong, the AUD/USD price found support around the psychologically important 0.7050 level.

As the US unemployment claims figure is expected to go up this week, the fundamental outlook for the AUD/USD would likely remain bullish. But, if the unemployment claims figure come lower than expected, and the AUD/USD price closes below the 0.7050 level, it would likely attract additional bearish momentum in the market.

Under such circumstances, it would be recommended that binary options traders consider placing a PUT order for the AUD/USD with their binary options once the price closes below the 0.7050 level.

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