Australia – House Price Index
Today, at GMT 1:30 a.m., the Australian Bureau of Statistics released the House Price Index (HPI) ,which measures the changes in the selling price of houses in the 8 state capitals in Australia.
Since rising house prices indicate that investors are confident about purchasing houses and vice-versa, it can binary options traders consider the HPI to be a leading indicator of investor confidence in the country. The HPI is usually released every three months in a quarter-over-quarter format.
In February, the Australian HPI suggested that house prices in Australia’s 8 state capitals have increased by 2% and the forecast for June was set an additional increase of 2.2%. However, the actual HPI came out much lower than what the binary options investors were expecting, an increase of only 1.6%.
United States – Core Durable Goods Orders
Later in the afternoon, at GMT 12:30 p.m., the US Census Bureau will release 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 indicate 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 May, the US core durable goods orders decreased by 0.2% and the forecast for June is currently set at an increase of 0.6%.
Trade Recommendation for the AUD/USD
The AUD/USD broke above the strong downtrend line in early June but the bullish momentum remained weak. Although it penetrated above, such weak buying pressure could not push and close the AUD/USD price above the 0.7800 level over the last few weeks.
Last week, the AUD/USD price once again penetrated above the 0.7800 level, but as quick profit taking took place, the price soon retraced below the resistance, which formed an Inside Bar (IB) on June 18.
On Friday, and early this week, the AUD/USD price kept trading within the Inside Bar’s high and low range. However, earlier today, the price finally penetrated below the low, signaling additional bearishness in the market.
Under the circumstances, it is recommended that traders consider placing a PUT order with their binary options brokers for the AUD/USD, as the price has already penetrated the low of the Inside Bar, at 0.7710.
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