GBP/AUD – Technical Analysis for Australian Binary Options
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, 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 increased by 4.8% and the forecast for this month was set at a decrease of -1.2%. However, the actual figure came out much lower than what the market was expecting, at -5.6%.
United Kingdom – Manufacturing PMI
Later, at GMT 8:30 a.m., the Markit released the United Kingdom’s manufacturing purchasing managers’ index (PMI) figure, which measures the level of a diffusion index by surveying around 600 purchasing managers in the country.
Since businesses are the first to react to changing economic climate and the PMI is calculated based on survey questions covering employment, production, price levels, new order situations as well as inventory conditions; binary options traders consider this data to be a leading indicator of the overall economic health of the country.
Last month, the UK’s manufacturing PMI came out at 56.3 and the forecast for this month was set at 56.4. However, the actual figure came out much lower than expected, at 54.3.
Since May 10, 2017, the GBP/AUD remained bearish and the pair went down by around 1,050 pips, and broke below the uptrend line in the process. However, during the last two months, the GBP/AUD also formed another uptrend line, which it tested last week but so far failed to penetrate. In the last few days, the GBP/AUD had a retracement and tested the psychological resistance near 1.6969. Currently, it is trading just below this major resistance level.
As the Australian building approvals figure went down by 5.6% and also the UK’s manufacturing PMI reading fell to 54.3, the fundamental outlook for the GBP/AUD would likely remain tentative this week. However, given the latest bullishness in the market, if the GBP/AUD breaks and closes above the resistance level around 1.6969, it would likely find additional bullish momentum in the market.
Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.6969.
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