AUD/USD – Technical Analysis for Forex Trading & CFDs.
United States – Final GDP
On Thursday, at GMT 12:30 p.m., the US Bureau of Economic Analysis will release the quarter-over-quarter final GDP, which measures the annualized change in the value of all goods and services produced by the US economy over the last quarter.
Forex traders consider the final GDP to be an important fundamental indicator of the US economy because it indicates how the overall economic activity measured up compared to the previous quarter.
Last quarter, the US final GDP increased by 3.0% and the forecast for this quarter is currently set at 3.1%.
Australia – Private Sector Credit
On Friday, at GMT 1:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data, which 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 as 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 0.5% and the forecast for this month is currently set at an increase of 0.5% as well.
Since early May 2017, the AUD/USD remained bullish and the pair climbed up by around 800 pips over the last few months and formed a well-respected uptrend line in the process. However, last week, the AUD/USD broke below the uptrend line, but soon found a strong support near the 0.7900 level.
As the Australian private sector credit is expected to grow only 0.5% in the last month, same as the previous month, but the US final GDP is expected to grow at a slightly higher rate, at 3.1% compared to 3.0% in the previous quarter, we believe it will set a bearish fundamental outlook for the AUD/USD this week. Therefore, if the pair breaks and closes below the support around 0.7900 level, it would likely attract additional bearish momentum in the market.
Hence, Australian Forex traders should look out for trading opportunities below this major support level around 0.7900.