AUD/USD – Technical Analysis for Australian Binary Options[banner-group name=”banner-analysis-fx”]
Australia – Cash Rate
Tomorrow, at GMT 4:30 a.m., the Reserve Bank of Australia (RBA) released the official cash rate, which is the interest rate that major Australian banks and financial institutions pay to borrow funds held at the RBA.
Since short-term interest rates are the primary factor in the valuation of the Australian Dollar against other major currencies, binary options traders pay close attention to any changes in the official cash rate.
The RBA left the cash rate at 1.5% in their last meeting and the forecast for this month is that the RBA will leave the cash rate unchanged at 1.5% for the time being.
United States – Unemployment Claims
On Thursday, at GMT 2:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.
Binary options investors consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.
Last week, the US unemployment claims figure came out at 223,00 and the forecast for this week is set at an increase to 239,000.
Trade Recommendation for the AUD/USD
After breaking below the uptrend line on February 28, the AUD/USD price went down by 110 pips over the last week and closed below the important support level around 0.7600. However, after reaching near the support around 0.7550 level, the pair lost its bearish momentum and formed a bullish pin bar at the end of the week. Currently, the AUD/USD is trading below the 0.7600.
As the Australian cash rate is expected to remain unchanged at 1.5%, but the US unemployment figure is expected to go up to 239,000, we believe it would set a bullish fundamental outlook for the AUD/USD this week.
Hence, if the AUD/USD price penetrates above the 0.7600 level, it would likely attract additional bullish momentum in the market.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the AUD/USD with their Australian binary options brokers as soon as the price closes above the 0.7600 level on the daily timeframe.
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