AUD/NZD May Turn Bullish if Price Closes Above Last Week’s Inside Bar

Australia – Building Approvals

Today, at GMT 1:30 a.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure, which measures the changes in the number of approvals of new buildings.

Since a build permit indicates new construction work, it suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, Australian binary options traders consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.

Last month, the building approvals figure went down by 6.6% and the forecast for this month was set at an increase of 2.1%. However, the actual figure came out much better than expected, at 3.1%.

New Zealand – GDT Price Index

Tomorrow, the Global Dairy Trade will release the GDT price index, which measures the changes in the average price of dairy products sold at auction in New Zealand.

Since the bulk of New Zealand’s exports to the world market consists of dairy products, the GDT price index acts as a leading indicator of the country’s trade balance because the rising price of dairy products ensures that foreign buyers have to purchase it at a higher price. Therefore, the binary options investors use this data to predict future trade balance, which helps in the valuation of the New Zealand Dollar against other major currencies.

Last month, the GDT price index decreased by 2.9% after increasing 1.4% on March 1. The overall trend for the GDT price index for the last few months remained bearish and if the trend continues, it would likely decrease this week as well.

Trade Recommendation for the AUD/NZDAUDNZDDaily

Since January 7, the AUD/NZD has remained in a bullish trend and formed two distinct bullish trend lines in the process. Last week, the AUD/NZD tested the intermediate uptrend line, but found ample support around the 38.2% Fibonacci retracement level of the last major upswing.

Since March 30, the AUD/NZD price has remained within the high and low of the day, which has effectively formed an inside bar.

As the Australian building permit has increased more than what the market was expecting, we believe the fundamental outlook for the AUD/NZD would likely remain bullish over the course of this week.

Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the AUD/NZD with their binary options brokers once the price closes above the 1.1144 level, which is the high of March 30.

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