AUDUSD Likely Remain Bullish Amid Forecast of Expanding Australian Private Sector Credit

AUDUSD – Technical Analysis for Binary Options Brokers

United States – Unemployment Claims

On Thursday, at GMT 1:30 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 brokers 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 245,00 and the forecast for this week is set at 241,000.

Australia – Private Sector Credit

On Friday, at GMT 12:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data, which measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.

Binary options traders consider the private sector credit to be an important fundamental indicator of the Australian economy as borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.

Last month, the private sector credit in Australia increased by 0.4% and the forecast for this month is currently set at an increase of 0.4% as well.

AUDUSD Forecast

AUDUSD Analysis for binary options brokers - 26th December 2017

After breaking below the uptrend line on November 3, the AUDUSD mostly traded sideways, but last week, it formed a bearish pin bar on December 5 and broke below the support level around 0.7535. However, the 0.7500 level kept the AUD/USD from going further South. Consequently, the AUD/USD turned bullish and broke above the downtrend line on December 13 and it is currently trading just below the resistance around the 0.7740 level.

As the Australian Private Sector Credit is expected to grow at 0.4% last month, but the US unemployment claims figure is expected to remain above 240,000, we believe it would set a bullish fundamental outlook for the AUD/USD this week. Therefore, if the AUDUSD closes above the resistance near 0.7740, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 0.7740.

Top Australian Binary Options Brokers to trade AUDUSD

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