- 1 AUD/USD – Technical Analysis for Forex Trading & CFDs.
AUD/USD – Technical Analysis for Forex Trading & CFDs.
Australia – Unemployment Rate
On Thursday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate, which measures the percentage of total work force which remained unemployed over the past month.
Forex trading investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situation in the country.
Last month, the unemployment rate in Australia came out at 5.7% and the forecast for this month the forecast is that the unemployment will remain unchanged at 5.7%.
United States – Building Permits
Later, at GMT 2:30 p.m., the US Census Bureau released the Building Permits figure, which is an annualized number of new building permits for the residential housing sector issued during the last month.
Since getting a building permit usually indicate future construction work, and construction work usually increases the demand for products and services in the local area, Forex investors consider this data to be a leading indicator of the overall economic activity in the country.
Last month, 1.20 million building permits were issued and this month, analysts are expecting the figure to come out around 1.22 million.
Trade Recommendation for the AUD/USD
Since breaking above the uptrend line on December 29, 2016, the AUD/USD climbed up around 275 pips over the last two weeks. However, after reaching near the 0.7500 area last week, the AUD/USD finally found a strong resistance.
As the Australian unemployment rate is expected to remain unchanged at 5.7% and the US building permits figure is expected to improve slightly, we believe it would likely set a bearish fundamental outlook for the AUD/USD this week. Hence, if the AUD/USD price closes below the next support level around 0.7444, it would likely attract additional bearish momentum in the market.
Under the circumstances, it would be recommended that Forex traders consider placing a SELL order at market price for the AUD/USD with their Forex trading brokers, as soon as it breaks below the 0.7444 level. A possible profit target for this trade would be around the 0.7360 level. On the other hand, Forex traders should consider placing a stop loss order above 0.7510.
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