AUD/USD Likely to Break Key Support As US JOLTS May Show US Labour Market Strength

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

United States – Job Openings (JOLTS)

On Tuesday, at GMT 3:00 p.m., the US Bureau of Labor Statistics will release the Job Openings and Labor Turnover Summary (JOLTS) figure that measures the number of job openings during the last month.

Although the JOLTS figure excludes the farming industry, Forex traders still consider it as a leading indicator of the overall health of the US economy. This is because new job openings will eventually end up employing someone and it may help gauge the consumer spending in the country.

Last month, the JOLTS Job Opening figure came out at 6.08 million and this month the forecast is set at 5.98 million.

Australia – Home Loans

On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the month-over-month home loans figure, which measures the changes in the number of new loans approved for owner-occupied homes.

Since most home purchases are financed by banks, the new home loan figure acts as an excellent gauge of how many qualified buyers are ready to take out home loans. Therefore, economists and Forex investors consider the changes in the new home loan figure to be a leading indicator of the overall economic situation in the country.

Last month, the Australian new home loans increased by 1.0% and the forecast for this month is set at an increase of 2.1%.

AUD/USD Forecast

The AUD/USD remained highly bullish since May 2017 and climbed up by around 780 pips over the last several months. Also, the pair formed two distinct uptrend lines during this uptrend. The first uptrend was broken back in September, and last week, the second uptrend was also broken. Currently, the AUD/USD is trading below second uptrend, where the 0.7635 level is acting as a minor support.

As the Australian home loans figure is estimated to increase by 2.1% last month, but the US JOLTS figure is still showing strength of the US labour market and likely to come near the 6 million marks, we believe it would set a bearish fundamental outlook for the AUD/USD this week. Therefore, if the AUD/USD closes below the support near 0.7635, 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 0.7635.

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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