GBP/AUD Might Break Below Key Support if Australian CB Leading Index Grows

United Kingdom – Claimant Count Change

On Wednesday, at GMT 9:30 a.m., the UK’s Office for National Statistics will release the Claimant Count Change figure. It measures the changes in the number of people claiming unemployment-related benefits during the previous month.

The Claimant Count Change figure is the first fundamental indicator that confirms the employment situation in the UK. Hence, binary options investors consider this to be an important indicator of consumer spending in the coming months. This is because consumer spending is highly dependent on the labor market situation in the country.

Last month, the UK’s Claimant Count Change figure came out at 8,600. The forecast for this month is currently set at 2,300.

Australia – CB Leading Index

On Wednesday, at GMT 3:30 p.m., the Conference Board Inc will release the month-over-month leading index for Australia. It measures the changes in the level of a composite index based seven other major fundamental indicators.

The CB leading index aggregates some of the other indicator data. So, binary options traders consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact.

Last month, the CB leading index increased by 0.3%. If the positive trend continues this month, it would likely have a bullish influence on the Australian Dollar against other major currencies.

GBP/AUD Forecast

GBPAUDDailyOn January 11, the GBP/AUD turned bullish and over the last month it climbed up by around 890 pips. But, after reaching near the 1.8000 level, it found a strong resistance. Consequently, the GBP/AUD turned bearish and the price fell towards the support around 1.7600. Earlier today, the pair once again tested the 1.7600 level, but so far failed to close below it.

The Australian CB leading index has gone up last month and the trend appears to be bullish. On the other hand, analysts are expecting the UK’s Claimant Count Change figure to come out at 2,300, which is lower than last month’s 8,600. We believe it would set a bearish fundamental outlook for the GBP/AUD this week. Therefore, if the GBP/AUD closes below the support near 1.7600, it would likely attract additional bearish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities below this major support level around 1.7600.

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