AUD/CHF Forecast & Technical Analysis for Binary Options
Australia – Cash Rate
On Tuesday, at GMT 5:30 a.m., the Reserve Bank of Australia (RBA) will release the official cash rate. It is the interest rate that major Australian banks and financial institutions pay to borrow funds held at the RBA.
Short-term interest rates are the primary factor in the valuation of the Australian Dollar against other major currencies. So, binary options brokers pay close attention to any changes in the official cash rate.
The RBA left the cash rate at 0.25% in their last meeting. The forecast for this month was that the RBA will leave it unchanged at 0.25%. The actual cash rate came out at 0.25% as well.
Switzerland – Consumer Price Index
On Thursday, at GMT 6:30 a.m., the Swiss Federal Statistical Office released the month-over-month consumer price index. It measures the changes in the price of products and services bought by Australian consumers over the past month.
Binary options investors consider the Swiss CPI to be the most important fundamental indicator to measure the inflation in the economy. This is because the Swiss Central Bank also uses the CPI to decide about setting future overnight interest rates. Hence, a rising quarterly CPI signal to the binary options market that there would be an increase in future interest rates.
Last month, the Swiss CPI decreased by -0.4%. The forecast for this month is set at -0.1% decrease.
Last week, the AUD/CHF broke above the resistance zone around 0.6400. However, after reaching the 0.6475 level, it found yet another key resistance. Over the last few days, it mostly remained range-bound. During this time, it fluctuated between 0.6370 and 0.6475 levels. Earlier today, the AUD/CHF once again tested and penetrated above the 0.6475 level. However, it soon started a retracement. Currently, it is trading just below the 0.6475 level.
The Reserve Bank of Australia will likely keep its overnight interest rate unchanged at 0.25%. On the other hand, the Swiss CPI level will likely come out negative, at -0.1%. We believe it would set a bullish fundamental outlook for the AUD/CHF this week. Therefore, if the AUD/CHF closes above the resistance near 0.6475, 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 0.6475.
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