GBP/AUD Support Near 1.8530 Likely to Hold Amid Forecast of Rising Unemployment in Australia

United Kingdom – Unemployment Rate

On Tuesday, at GMT 12:30 a.m., the UK’s Office for National Statistics will release the national unemployment rate. It measures the percentage of the total workforce which remained unemployed over the past month.

Forex traders consider the unemployment rate to be one of the most important fundamental indicators of the UK’s economy. It is because one of the main goals of the Bank of England is to keep unemployment as low as possible. This is a lagging indicator. But, analyzing this data can help Forex traders predict future interest rates. Also, it can help forecast the inflation situation in the country.

Last month, the unemployment rate in the United Kingdom came out at 4.6%. This month, analysts are expecting it to come down to 4.5%.

Australia – Unemployment Rate

On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It measures the percentage of the total workforce which remained unemployed over the past month.

Binary options investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy. It is because one of the main goals of the Reserve Bank of Australia is to keep unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help binary options traders predict future interest rates and inflation situations in the country.

Last month, the unemployment rate in Australia came out at 4.5%. This month, analysts are expecting it to go up to 4.8%.

GBP/AUD Forecast

The GBP/AUD formed a bearish pin bar on August 20, 2021. Over the last two months, it fell by around 630 pips. However, after falling to 1.8530 on September 3, it started a bullish retracement and formed a symmetrical triangle.  On October 1, the GBP/AUD broke below the symmetrical triangle. Currently, it is testing the support near the 1.8530 level.

The Australian unemployment rate will likely go up over the last month from 4.5% to 4.8%. By contrast, analysts are expecting the UK’s unemployment rate to come down from 4.6% to 4.5%. We believe it would set a bullish fundamental outlook for the GBP/AUD this week. Therefore, if the GBP/AUD continues to trade above the support near 1.8530, it would likely attract additional bullish momentum in the market.

Hence, binary options traders should look out for trading opportunities above this major support level around 1.8530.

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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