AUD/USD Bears Likely to Test Key Support Despite Slowing Australian Construction Work

Australia – Construction Work Done

On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the quarter-over-quarter Construction Work Done index, which measures the changes in the total inflation adjusted value of construction works and projects completed in the country.

Since construction industry has a sizeable influence on the overall employment and consumer spending in the economy, binary options traders consider the Construction Work Done index to be a leading indicator of the Australian economic strength.

Last quarter, the Australian Construction Work Done reading increased by 9.3%, but the forecast for this quarter is set at a -2.1% decrease.

United States – Core Durable Goods Orders

Later, at GMT 1:30 p.m., the US Census Bureau will release the month-over-month core durable goods orders figure, which measures the changes in the total value of all new purchase orders made to the US manufacturers for durable goods over the past month. However, the US Census Bureau excludes goods from the transportation sector in this figure in order to offer an accurate picture.

Binary options investors consider the US core durable goods orders to be the primary gauge of production situation in the economy, as an increase in purchase orders indicates that US manufacturing activity and growth will happen in the near future.

Last month, the US core durable goods orders increased by 0.7% and the forecast for this month is currently set at an increase of 0.4%.

AUD/USD Forecast

Since breaking below the uptrend on September 19, 2017, the AUD/USD fell by around 430 pips over the last two months. In fact, by end of October, the AUD/USD also broke below the second uptrend line and the important support near the 0.7570. Currently, the AUD/USD is approaching the next major support, which is located near the 0.7515 level.

As the Australian Construction Work Done index is expected to go down, but the US Core Durable Goods Orders is expected to increase, we believe it would set a bullish fundamental outlook for the AUD/USD this week. However, the current downtrend seems to very strong and if the pair can break below the important support near 0.7515, it will likely continue to go down further south.  Therefore, if the AUD/USD closes below the support near 0.7515, 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 0.7515.

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