AUD/USD Likely to Turn Bearish Amid Forecast of Declining Building Approvals in Australia

AUD/USD – Technical Analysis for Australian Regulated Brokers

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United States – CB Consumer Confidence

Tomorrow, at GMT 4:00 p.m., the Conference Board Inc. will publish its Consumer Confidence index that measures the level of a composite index created from data based on a regular monthly household survey.

A higher consumer confidence usually indicates future consumer spending, which can significantly affect the overall economic conditions. Hence, binary options traders consider this kind of survey based index to be a leading indicator.

Last month, the CB Consumer Confidence index came out at 113.7 and this month, the forecast is that the index reading will come out slightly lower, at 112.6.

Australia – Building Approvals

On Thursday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release 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, binary options investors 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 up by 7.0% and the forecast for this month is currently set at a decrease of -1.7%.

Trade Recommendation for the AUD/USD

AUD/USD Analysis for Australian Regulated Brokers

Since December 23, 2016, the AUD/USD price has climbed by around 440 pips and reached near the key pivot zone near 0.7575 level, where it found a strong resistance. As a result, over the last week, the AUD/USD price mostly remained range bound and started a minor retracement by the end of the week.

As the CB consumer confidence index is expected to slightly decline in the US, but the Australian building approvals figure is expected to decline -1.7% compared to 7% increase in the last month, we believe it would likely set a bearish outlook for the AUD/USD this week. Hence, if the AUD/USD price penetrates below the next support level around 0.7490, it would likely attract additional bearish momentum in the market.

Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the AUD/USD with their Australian regulated brokers as soon as the price closes below the 0.7490 level on the daily timeframe.

Australian Regulated Brokers to trade AUD /AUD

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