GbP/AUD – Technical Analysis for Binary Options Brokers[banner-group name=”banner-analysis-fx”]
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 down by -1.2% and the forecast for this month is currently set at an additional decrease of -0.4%.
United Kingdom – Construction PMI
Later, at GMT 10:30 a.m., the Markit released the UK Construction PMI figure that measures the level of a diffusion index created by surveying 170 purchasing managers from the UK’s construction industry.
Binary options traders consider the UK Construction PMI to be a leading indicator of the country’s economic health as the construction sector usually creates ripple effects in the economy.
Last month, the UK Construction PMI came out at 52.2, which indicated an expansion in the construction sector. This month, the forecast is currently set at a slightly lower figure, at 52.1.
Trade Recommendation for the GBP/AUD
Since breaking below the downtrend line on January 30, 2017, the GBP/AUD price went down by around 400 pips over the last few weeks. However, as soon as the price reached near the support around 1.6125 level, the bearishness faded away, and for the last two weeks the GBP/AUD mostly remained range bound.
As the UK’s construction PMI figure is expected to come close to last month’s 52.2 reading, but the Australian building approval figure is expected to decline by only -0.4% compared to -1.2% last month, it would likely set a bearish fundamental outlook for the pair this week. Hence, if the GBP/AUD price penetrates below the 1.6125 level, 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 GBP/AUD with their binary options brokers in Australia as soon as the price closes below the 1.6125 level on the daily timeframe.
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