AUD/USD Retracement May Push the Price Much Higher

Australia – New Motor Vehicle Sales

Today, at GMT 12:30 a.m., the Australian Bureau of Statistics released the new motor vehicle sales figure, which measures the changes in the number of cars that are sold in the local market over the past month.

Since people tend to make car purchases when they feel confident about their financial conditions, binary options traders consider the new motor vehicle sales figure is be a leading indicator of the consumer confidence in Australia.

Last month, the new motor vehicle sales (m/m) figure increased by1.3% and this month it declined by 0.5%.

United States – Building Permits

On Wednesday, at GMT 1:30 p.m., the US Census Bureau will release the Building Permits figure, which is an annualized number of new building permits for the residential housing sector issued during the last month.

Since getting a building permit usually indicate future construction work, binary options investors consider this data to be a leading indicator of the overall economic activity in the country.

Last month, 1.28 million building permits were issued and this month, analysts are expecting the figure to come out around 1.20 million.

Trade Recommendation for the AUD/USD

AUDUSDDaily

When the AUD/USD price broke below the uptrend line and support level in the same day on January 6, it was pretty predictable that bears will dominate the market for a while.

As a result, the AUD/USD price has fallen by as much as 225 pips since January 6. However, the 0.6825 level provided ample support and the AUD/USD retraced around 126 pips since the start of this week.

The Australian Dollar considered as a commodity currency and the economic slowdown in China and its impact on South East Asia has impacted the AUD in a negative way over the last year. While the medium term momentum would be bearish due to this, if the AUD/USD price closes above the 0.6930 level this week, it would indicate a retracement move that may push the price much higher.

Under the 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 0.6930 level.

Recommended Broker: Finpari

 

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