Switzerland – Trade Balance
On Tuesday, at GMT 1:30 a.m., the Swiss Federal Statistical Office will release the monthly trade balance figure, which measures the difference in value between net import and export of goods over the past month.
Since the demand for export is directly correlated with the demand for the Swiss Franc, binary options traders analyze the monthly trade balance in order to gauge the strength of the CHF against other major currencies.
Last month, the Swiss trade balance figure came out at 3.41 billion and the forecast for July is currently set a much lower figure compared to June, at 2.54 billion.
Australia – Consumer Price Index
Later on Wednesday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the quarter-over-quarter consumer price index, which measures the changes in the price of products and services bought by the Australian consumers over the past second quarter of 2015.
Binary options investors consider the Australian CPI to be the most important fundamental indicator to measure the inflation in the economy. This is because the Australian Central Bank also uses the CPI to decide about setting future overnight interest rates. Hence, a rising quarterly CPI signals to the binary options market that there would be an increase in the future interest rates.
During the Q1’15, the Australian CPI increased by 0.2% and the forecast for Q2 is currently set at an improved rate, at 0.8%.
Trade Recommendation for the AUD/CHF
The AUD/CHF remained in a strong downtrend since the Swiss Central Bank removed the peg with the EUR/CHF in January 2015. However, since the start of Q2, the AUD/CHF has been trading within a tight range between 0.7080 and 0.7292.
On July 3, the AUD/CHF price penetrated and closed below the psychological support level around 0.7100, and price soon declined further towards the 161.8% Fibonacci extension level of the range.
However, the pair found strong support at the support around 0.6950 level, and over the last week, the AUD/CHF gradually retraced back to the 0.7100 level. Earlier today, the AUD/CHF price penetrated this level and currently trading outside the long-term downtrend line.
As the Australian quarterly CPI is expected to increase by 0.6% in Q2, the fundamental outlook for the AUD/CHF this week would be very bullish.
Under the circumstances, once the AUD/CHF price closes above the resistance level, at 0.7100, it is recommended that traders consider placing a CALL order with their australian binary options brokers.
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