GBPAUD – Technical Analysis for Australian Forex Brokers
Australia – National Australia Bank (NAB) Limited Business Confidence Index
On Tuesday, at GMT 1:30 a.m., the National Australia Bank (NAB) Limited will release its monthly business confidence index figure. This figure measures the level of a diffusion index based on a survey of 350 businesses in Australia.
The survey asks respondents to rate the current business environment in Australia. Businesses are the first to react to changing business conditions. So, Australian forex brokers consider it as a leading indicator of the overall economic health in the coming months. It is because the level of their sentiment can signal optimism and business confidence in the economy.
Last month, the NAB business confidence index reading came out at 9, after coming at 12 in the previous month. If the trend continues this month, it will likely to have a bearish effect on the Australian Dollar.
Canada – Building Permits
On Tuesday, at GMT 12:30 p.m., Statistics Canada will publish the monthly Building Permits figure. It measures the changes in the total number of new permits issued for constructing new premises in the country.
Building permits are mandatory to start building construction. So, the number of new permits acts as a leading indicator of the future construction activity in the country. Also, forex trading investors consider that new constructions help energize the economy, as new buildings require materials from many other industries.
Last month, the amount of new Building Permits grew by as much as 5.6%. If this trend continues, it will like have a bullish effect on the Canadian Dollar.
AUD/CAD Forecast
The AUD/CAD remained bullish since forming a pin bar on December 6, 2017. Over the last few months, the pair climbed up by around 650 pips. However, on March 15, 2018, it turned bearish, broke below the uptrend line on March 22, and fell by around 180 pips. On April 5, the AUD/CAD found support near the 0.9785 level.
The Australian NAB Business Confidence Index reading declined from 12 to 9 last month. On the other hand, the Canadian building permits went up by 5.6%. We believe it would set a bearish fundamental outlook for the AUD/CAD this week. Therefore, if the AUD/CAD closes below the support near 0.9785, it would likely attract additional bearish momentum in the market.
Hence, Australian forex traders should look out for trading opportunities below this major support level around 0.9785.
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