Australia – CB Leading Index
Today, at GMT 3:30 p.m., the Conference Board Inc will release the month-over-month leading index for Australia, which measures the changes in the level of a composite index based seven other major fundamental indicators. Since the CB leading index aggregates some of the other indicator data, binary options brokers consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact. In January, the CB leading index increased by 0.3% and this month it declined by 0.2%.
United Kingdom – GDP Second Estimate
On Thursday, at GMT 9:30 a.m., the UK’s Office for National Statistics will release the quarter-over-quarter second estimate of the GDP, which measures the changes in the inflation adjusted value of all products and service made in the country over the past quarter. Since GDP measures the overall productivity in the economy, the second estimate acts as a leading indicator of the actual GDP growth level. Hence, binary options traders consider the UK’s second estimate GDP (q/q) to be an important indicator of the health of the economy. Last quarter, the second estimate GDP was at 0.5% growth and the forecast for this quarter is also set at an additional 0.5% growth.
Trade Recommendation for the GBP/AUD
The GBP/AUD has remained in a downtrend since August 2015 and over the last few weeks, the downtrend has accelerated. Since January 10, 2016, the GBP/AUD has declined around 1430 pips. Today, despite the fact that the CB Leading Index declined by 0.2%, the GBP/AUD price declined around 490 pips amid strong speculation that the United Kingdom is likely to quit the EU. Furthermore, the 13,000 rebound in Australia employment along with an increasing labor participation rate in the economy has also fueled the AUD today. However, since the GBP/AUD has already declined by 500 pips, and currently trading near a major support level, 1.9575, it may start a retracement soon. Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the GBP/AUD with their binary options brokers at once the price closes above the support around 1.9575.
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