Australia – Consumer Price Index
On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the quarter-over-quarter consumer price index (CPI) figure. It measures the changes in the price of goods and services bought by Australian consumers in the last quarter.
The consumer price index is primarily used by the Australian central bank to measure inflation. Any significant change in the CPI often makes the Forex market extremely volatile. Also, the inflation at the retail level has a big influence on the central bank’s future monetary policy. Hence, it is considered by binary options traders to be a leading indicator of the Australian economy.
Last quarter, the Australian consumer price index decreased by .04%. The forecast for this quarter is set at an increase of 0.4% as well.
Canada – Gross Domestic Product
On Thursday, at GMT 1:30 p.m., the Statistics Canada will release the month-over-month Gross Domestic Product (GDP). It measures the changes in the inflation adjusted value of all products and service made in the country over the past quarter.
The GDP measures the overall productivity in the economy. Hence, it acts as an indicator of the actual economic activity in the country. Binary options investors consider the Canada’s GDP (m/m) to be an important indicator of the health of the economy.
Last month, the Canadian GDP did not grow at all and came out at 0.3% growth. If the GDP growth accelerates this month, it will help strengthen the Canadian Dollar against other major currencies.
After falling almost by 300 pips on January 2, the AUD/CAD remained mostly range bound. During the last month, the AUD/CAD traded within the right range between 0.9435 and 0.9575. Last week, it went on to test the support near 0.9435, but so far bounced back from the last once again. Currently, it is approaching to test the resistance near the upper end of the range.
The Australian consumer price index will likely increase by 0.4% over the last month. On the other hand, the Canadian GDP grew by 0.3% last month and it may come close to last month’s growth. We believe it would set a bullish fundamental outlook for the AUD/CAD this week. Therefore, if the AUD/CAD closes above the resistance near 0.9575, 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 0.9575.
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