Japan – Preliminary GDP
On Sunday, at GMT 11:50 p.m., the Japanese Cabinet Office released the national quarter over quarter Preliminary GDP figure, which measures the changes in the value of all goods and service produced by the Japanese economy during the last quarter. This figure is usually published after adjusting inflation and it is considered as one of the key leading economic indicators. Since the preliminary GDP figure is published first, it usually has the highest market impact. Hence, binary options traders consider it to be a leading indicator of the Japanese economy. Last quarter, the Japanese Preliminary GDP came out at 0.3% and the forecast for this quarter was set at -0.3%. However, the actual figure came out slightly lower than what the market was expecting, at -0.4%.
Australia – Unemployment Rate
On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate, which measures the percentage of total work force which remained unemployed over the past month. Binary options investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help predict future interest rates and inflation situation in the country. In January 2015, the unemployment rate in Australia came out at 5.8% and the forecast for February is currently set at 5.8% as well.
Trade Recommendation for the AUD/JPY
Since December 4, 2015, the AUD/JPY has remained in a strong downtrend, which pushed the price to 77.50 last week. After reaching near the support level around 77.50, the AUD/JPY started a retracement and formed a bullish pin bar, and the high of this pin bar was penetrated earlier on Monday. Today, the AUD/JPY price reached near the 38.2% Fibonacci retracement level of the last downward swing, and found resistance, which appears to be forming a potential bearish outside bar (BEOB). Although the Japanese preliminary GDP figure came out worse than expected, the AUD/JPY downtrend still appears to be strong. Under the circumstances, it would be recommended that traders consider placing a PUT order for the AUD/JPY with their binary options brokers at once the price closes below the support around 80.40.
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