AUD/USD Breaks Uptrend Line and Approaches Key Support Amid Improving US Retail Sales

Australia – Home Loans

Tomorrow, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the month-over-month home loans figure, which measures the changes in the number of new loans approved for owner-occupied homes.

Since most home purchases are financed by banks, the new home loan figure acts as an excellent gauge of how many qualified buyers are ready to take out home loans. Therefore, economists and binary options traders consider the changes in the new home loan figure to be a leading indicator of the overall economic situation in the country.

Last month, the Australian new home loans decreased by -1.9% and the forecast for this month is set at an increase of 1.6%.

United States – Retail Sales

On Friday, at GMT 12:30 p.m., the US Census Bureau will release the national month-over-month retail sales figure, which measures the changes in the total value of all sales made at the retail level in the country over the past month.

Retail sales data are considered by binary options investors to be the primary gauge of consumer spending and confidence. This is because when consumers are confident about their future financial situation, they tend to spend more.

Last month, the US retail sales value decreased by -0.3% and the forecast for this month is that it would likely increase by 0.2%.

AUD/USD Forecast

Although the AUD/USD remained bullish since May 9 and climbed up by around 375 pips over the last two months, on June 30, the pair formed a bearish pin bar that started a retracement. Over the last week, the AUD/USD price has fallen by around 140 pips, broke the uptrend line, and found support near the 0.7570 level.

As the US retail sales figure is expected to increase by 0.2% against a -0.3% decline last month, we believe the fundamental outlook for the AUD/USD would likely remain bearish this week. Therefore, if the AUD/USD breaks below the support level near 0.7570, it would likely find additional bearish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities below this major support level around 0.7570.

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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