GBP/AUD Appears Bullish Amid Impressive Growth of Net Lending to Individuals in the UK

United Kingdom – Net Lending to Individuals

On Tuesday, at GMT 9:30 a.m., the Bank of England released the month-over-month net lending to individuals figure. It measures the changes in the total value of new credit issued to consumers in the past month.

Consumer spending has a high correlation to consumer credit.  The net lending to individuals figure can indicate future consumer spending as well as consumer confidence in the economy. This is because people only take on debt when they feel financially secure about future incomes.

Last month, the last net lending to individuals figure came out at 2.0 billion. The forecast for this month was set at 3.9 billion. The actual figure came out much better, at 4.9 billion.

Australia – ANZ Job Advertisements

On Wednesday, at GMT 12:30 a.m., Australia and New Zealand Banking Group (ANZ) will release its monthly Job Advertisement figure. It measures the changes in the number of advertised jobs in key Australian cities through the major daily newspapers and web portals.

Job advertisements usually lead to hiring new employees. So, Forex traders consider this data from ANZ to be a leading indicator of the employment trend in the country. The ANZ Job Advertisement figure usually has a greater impact on the Australian Dollar when it is released before the Australian government’s official employment data.

Last month, the ANZ Job Advertisement figure increased by 7.4%. If the positive trend continues, it will likely have a bullish effect on the Australian Dollar.

GBP/AUD Forecast

GBP/AUD Technical Analysis January 4, 2022

Since August 20, 2020, the GBP/AUD remained bearish and formed a downtrend line. However, the GBP/AUD started a bullish retracement on November 3. Consequently, it broke above the downtrend line on November 19. But it found a strong resistance near the 1.8915 level at the beginning of December and fell sharply to retest the support near the previous downtrend line. Over the last month, the GBP/AUD has been gradually gaining bullish momentum but mostly remained range-bound. Currently, it is trading just below the intermediate resistance near the 1.8770 level.

The ANZ Job Advertisements in Australia has remained on a positive trend. However, the Net Lending to Individuals figure in the UK just came out way better than expected. We believe it would set a bullish fundamental outlook for the GBP/AUD this week. Therefore, if the GBP/AUD closes above the resistance near 1.8770, it would likely attract additional bullish momentum in the market.

Hence, binary options traders should look out for trading opportunities above this major resistance level around 1.8770.


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