Australia – CB Leading Index
On Monday, at GMT 2:30 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.
Canada – Wholesale Sales
On Tuesday, at GMT 12:30 p.m., the Statistics Canada will release the month-over-month wholesale sales data. It measures the changes in the total value of sales made by the wholesale sector in Canada over the past month.
Binary options investors consider the wholesale sales figure to be an important leading indicator of the Canadian economy. Because retailers tend to place more orders to wholesales when they feel optimistic about their retail sales. Hence, an increase in the wholesale sales signals a growing GDP in the future.
Last month, the Canadian wholesale sales decreased by -0.8%. However, this month, analysts are expecting it to increase by 0.9%.
AUD/CAD Forecast
Since March 14, the AUD/CAD remained highly bearish and the price fell by around 680 pips. During the last two month’s bearishness, it has also formed a well-respected downtrend line. However, after reaching the 0.9590 level, it found a strong support. Consequently, the AUD/CAD broke above the downtrend line. Currently, it is trading just below the psychological resistance level around the 0.9695 level.
The Australian CB Leading Index increased by 0.3% last month and it might continue to grow. On the other hand, the Canadian wholesale sales decreased by -0.8% last month. While analysts are expecting it to increase by 0.9%, if the actual figure comes below the expectation, it will have a bearish effect on the Canadian Dollar. Therefore, we believe it would set a bullish fundamental outlook for the AUD/CAD this week. In that scenario, if the AUD/CAD closes above the resistance near 0.9695, 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 0.9695.
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