United States – Core Durable Goods Orders
Yesterday, at GMT 12:30 p.m., the US Census Bureau released 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 traders 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. Hence, it is one of the key leading indicator of the overall US economy.
In March, the US core durable goods orders decreased by 1.3% and the forecast for April was set at an increase of 0.6%. However, actual figure came out much worse than expected, at -0.2%.
Australia – Consumer Price Index
Tomorrow, at GMT 1:30 a.m., the Australian Bureau of Statistics released the quarter-over-quarter consumer price index (CPI) figure that measures the changes in the price of goods and services bought by Australian consumers in the last quarter.
Since the consumer price index is primarily used by the Australian central bank to measure inflation, any significant change in the CPI often makes the Forex market extremely volatile. Also, as the inflation at the retail level has a big influence on the central bank’s future monetary policy. Hence, it is considered by binary options investors to be a leading indicator of the Australian economy.
Last quarter, the Australian consumer price index increased by 0.4%, and the forecast for this quarter was set at an additional increase of 0.3%. However, the actual data indicated that the Australian CPI decreased by at 0.2% instead.
Trade Recommendation for the AUD/USD
After making several attempts, the AUD/USD price finally closed above the important resistance around the 0.7675 level. However, earlier today, the AUD/USD price declined by around 150 pips amid the lower than expected Australian CPI data.
Currently, the AUD/USD is trading below the intermediate pivot level at 0.7620. If the bearish momentum continues and the AUD/USD price closes below this level, it would certainly help set the market bias and may attract additional bearish pressure in the next few days
Hence, it would be recommended that binary options traders consider placing a PUT order for the AUD/USD with their binary options brokers once the price closes below the 0.7620 level.
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