AUD/USD Bullish Momentum May Persist to Ignore Fundamentals This Week

Australia – Home Loans

On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the month-over-month home loans figure, which measures the changes in the number of new loans approved for owner-occupied homes.

Since most home purchases are financed by banks, the new home loan figure acts as an excellent gauge of how many qualified buyers are ready to take out home loans. Therefore, economists and binary options traders consider the changes in the new home loan figure to be a leading indicator of the overall economic situation in the country.

Last month, the Australian new home loans increased by 2.6% and the forecast for this month is set at a decrease of 2.7%.

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 278,000 and the forecast for this week is currently set at a slightly lower figure, at 272,000.

Trade Recommendation for the AUD/USD

AUDUSDDaily

Although the AUD/USD was very bullish over the last two months, the bullish move was held back by two major resistances, mainly the 0.7250 and 0.7350 levels.

However, last week, the AUD/USD found renewed bullish momentum and closed above both of these resistances. In fact, after gaining around 330 pips, last week the AUD/USD price penetrated and closed above the 0.7420 level as well, first time since August 2015.

As the US unemployment claims figure and the Australian home loans figure is expected is to go down this week, both are fundamentals are suggesting that the outlook for the AUD/USD would remain bearish.

Regardless, if the AUD/USD price closed above last week’s high, which is at 0.7443, the momentum may carry the price further up.

Under such circumstances, it would be recommended that binary options traders consider placing a CALL order for the AUD/USD with their binary options brokers once the price closes above the 0.7443 level.

Recommended Broker for US traders: Finpari

Recommended Broker for Non-US Traders: Binary Brokerz

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