AUD/USD Price Action is Indicating Additional Bearishness

Australia – ANZ Job Advertisements

Today, at  GMT 12:30 a.m., Australia and New Zealand Banking Group (ANZ) released its monthly Job Advertisement figure, which measures the changes in the number of advertised jobs in key Australian cities through the major daily newspapers and web portals.

Since job advertisements usually lead to hiring employees, binary options traders consider this data from ANZ to be a leading indicator of the employment trend in the country. The ANZ Job Advertisement figure usually has greater impact on the Australian Dollar when it is released before the Australian government’s official employment data.

Last month, the ANZ Job Advertisement figure had a growth of 0.3%, and this month it grew by 1 percentage point, and the actual figure indicated a 1.3% growth in the number of job advertisements.

United States – Unemployment Claims

On Thursday, at GMT 1:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.

Binary options investors consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.

Last week, the US unemployment claims figure came out at 269,000 and the forecast for this week is currently set at a slightly lower figure, at 266,000.

Trade Recommendation for the AUD/USD


Since the forming of a minor bullish pin bar on November 10, the AUD/USD has remained bullish and formed an uptrend line in the process. However, last week, the AUD/USD price found strong resistance around the pivot zone at the 0.7350 level and the pair formed a Doji bar on December 4.

Although the ANZ job advertisement figure improved over the last month, the forecast about better US unemployment claim this week pushed the AUD/USD price down. Earlier during the London trading session, the AUD/USD penetrated the low of the Doji bar, indicating a bearish bias in the market.

If the bearish momentum continues, there is a high probability that the AUD/USD price would move lower towards the uptrend line later this week.

Under the circumstances, it would be recommended that traders consider placing a PUT order for the AUD/USD with their binary options brokers once the price closes below the 0.7265 level, which happens to be the 38.2% Fibonacci retracement level of the last major bearish move.

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About our Forex and Binary Options Analyst:  Asif Imtiaz

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