Australia – Building Approvals
On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure. It measures the changes in the number of approvals of new buildings.
A building permit indicates new construction work. It also suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options investors consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.
Last month, the building approvals figure decreased by -19.4%. This month, analysts were expecting it to increase by 3.5%. However, the actual figure came much better, at 21.6%.
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 Swiss consumers over the past month.
Binary options traders consider the Swiss CPI to be the most important fundamental indicator to measure inflation in the economy. This is because the Swiss Central Bank also uses the CPI to decide about setting future overnight interest rates. Hence, rising quarterly CPI signals to the binary options market that there would be an increase in the future interest rates.
Last month, the Swiss CPI increased by 0.2%. The forecast for this month was set at a 0.4% decrease. However, the actual figure came out slightly lower, at 0.3%.
Since October 2020, the AUD/CHF remained bullish. Over the last few months, it formed a well-respected uptrend line as the price went up from 0.06370 to 0.7250. However, it remained range-bound since the end of February 2021. Over the last month, the AUD/CHF mostly traded between the 0.7090 and 0.7230 level. Earlier today, it tested the intermediate support near 0.7130 but promptly rebounded. Currently, it is trading below the resistance near 0.7200.
The Australian building approvals figure increased by 21.6% against a forecast of 3.5%. On the other hand, the Swiss CPI only increased by 0.3% against a slightly higher forecast. 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 0.7200, 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 0.7200.
- GBP/AUD Appears Bullish Amid Impressive Growth of Net Lending to Individuals in the UK - January 4, 2022
- AUD/CHF Likely to Break Above Key Resistance if Swiss Trade Balance Declines - December 20, 2021
- AUD/JPY Downtrend Line Likely to Hold the Bulls As Declining Japanese Household Spending Slowed Down - December 7, 2021