AUD/USD Downtrend Likely to Prevail as Australian Labor Market Situation Deteriorates

Australia – ANZ Job Advertisements

On Monday, at GMT 1:30 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, 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 increased by 0.1%, and this month it declined by 0.8%, indicating that employers are looking to hire less workers in the coming months.

United States – Unemployment Claims

On Thursday, at GMT 12:30 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 274,000 and the forecast for this week is currently set at a slightly higher figure, at 277,000.

Trade Recommendation for the AUD/USD

AUDUSDDaily

After breaking below the well-respected uptrend line on May 3, the AUD/USD accelerated the bearish move, which pushed the price towards the 0.7350 level last week. Earlier today, the AUD/USD price penetrated below this important support level. Currently trading below the 0.7350 level.

As the ANZ Job Advertisements figure has declined, it indicates that the Australian economy is slowing down, which will likely have a profound bearish impact on the AUD/USD this week. Furthermore, once the AUD/USD price closes below the 0.7350 level, it would likely attract more bearish momentum in the market.

Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the AUD/USD with their binary options brokers at market price, as soon as it closes below the 0.7350 level.

Recommended Broker for US traders: Finpari

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