AUD/USD Likely to Bounce Off Key Support Amid Expanding Australian Private Sector Credit

AUD/USD – Technical Analysis for Forex Trading & CFDs.

United States – New Home Sales

On Monday at GMT 3:00 p.m., the United States Census Bureau released the New Home Sales figure. It measures the annualized number of new family homes sold during the last month.

The sale of a new home usually causes an increase in a wide ranging economic activity, such as sales of new furniture, new mortgage for the home, etc. Forex traders considered the New Home Sales figure to be a leading fundamental indicator of the US economy.

Last month, on a year-over-year basis, total 654,000 new homes were sold in the United States. This month, the it came out at 593,000 against a consensus forecast of 655,000.

Australia – Private Sector Credit

On Wednesday, at GMT 11:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data. It measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.

Forex investors consider the private sector credit to be an important fundamental indicator of the Australian economy. Because borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.

Last month, the private sector credit in Australia increased by 0.3%. The forecast for this month is currently set at an increase of 0.4%.

AUD/USD Forecast

The AUD/USD remained range bound between 0.7780 and 0.7950 since the start of February. Earlier this week, the pair once again turned bearish and about to test the support near 0.7780.

The US new home sales figure unexpectedly came out much lower than the estimate. On the other hand, the Australian private sector credit is set to grow 0.4%. We believe it would set a bullish fundamental outlook for the AUD/USD this week. Therefore, if the AUD/USD bounces off the 0.7780 level, it would likely attract additional bullish momentum in the market.

Hence, Australian Forex traders should look out for trading opportunities above this major support level around 0.7780.

BTC/AUD Forecast

After falling towards the 12,000 level, the BTC/AUD found strong support. However, in the last few weeks, despite increasing government regulation across the world against bitcoin, the BTC/AUD started a bullish retracement and broke above the downtrend line. Currently, it is testing the resistance near the 14,000 level.

Earlier this week, news broke that Tokyo-based cryptocurrency exchange Coincheck is thinking about a capital tie-up to strengthen its financial base. Doing so will help them regain trust and it will be a positive development for Cryptocurrency traders. We believe this new development will accelerate the current bullish momentum of BTC/AUD.

Hence, Australian bitcoin traders should look out for trading opportunities above this major resistance level around 14,000.

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 about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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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 about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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