AUD/USD – Technical Analysis for Forex Trading & CFDs.
Australia – Building Approvals
On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure, which measures the changes in the number of approvals of new buildings.
Since a build permit indicates new construction work, it suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, Forex traders consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.
Last month, the building approvals figure increased by 1.5% and the forecast for this month is set at a decrease of -0.9%.
United States – Unemployment Claims
Later, at GMT 1:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.
Forex investors consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.
Last week, the US unemployment claims figure came out at 239,00 and the forecast for this week is set at an increase to 241,000.
Since breaking below the uptrend on September 19, 2017, the AUD/USD fell by around 430 pips over the last two months. In fact, by end of October, the AUD/USD also broke below the second uptrend line and the important support near the 0.7570. Currently, the AUD/USD is trading just below the resistance near the 0.7633 and appears to be bearish.
As the US jobless claims figure is expected to go up a bit over the last week, but the Australian building approval rate is expected to decline by -0.9%, we believe it would set a bearish fundamental outlook for the AUD/USD this week. Therefore, if the AUD/USD closes below the support near0.7535, 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 0.7535.