AUD/USD May Remain Bullish Amid Better Than Expected Australian Building Approvals

Australia – Building Approvals

Today, at GMT 1:30 a.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure, which measures the changes in the number of approvals of new buildings.

Since a build permit indicates new construction work, it suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, US binary options traders consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.

Last month, the building approvals figure went down by 6.6% and the forecast for this month was set at an increase of 2.1%. However, the actual figure came out much better than expected, at 3.1%.

United States – ISM Non-Manufacturing PMI

Tomorrow, at GMT 2:00 p.m., the US based Institute for Supply Management (ISM) will release its monthly Non-Manufacturing PMI figure, which measures the level of a diffusion index created by surveying purchasing managers. However, the ISM’s PMI figure excludes the non-manufacturing sector.

Binary options investors consider the ISM Non-Manufacturing PMI figure to be a leading economic indicator because purchasing managers have the most updated view of the economy.

Based on last month’s survey, the ISM’s PMI figure came out at 53.4 against the forecast of 53.5 and the forecast for this month is currently set at an optimistic 54.1.

Trade Recommendation for the AUD/USD

AUDUSDDaily

After being in a strong uptrend for the last several weeks, the AUD/USD finally found a strong resistance around the 0.7675 area last week. Although the AUD/USD price penetrated above the 0.7675 level several times, a lack of bullish momentum pushed the price below this resistance and the pair failed to close above this level.

As the Australian building permits figure unexpectedly increased by 3.1% against a forecast of 2.1% today, we believe the fundamental outlook for the AUD/USD would likely remain bullish this week. However, if the US ISM non-manufacturing PMI figure comes as expected at 54.1, or higher, it may set the market bias to a bearish one.

Based on that hypothesis, 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 0.7675

Recommended Broker for US traders: Finpari

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