GBP/AUD – Technical Analysis for Forex Trading & CFDs.
United Kingdom – Consumer Price Index
On Tuesday, at GMT 8:30 a.m., the UK’s Office for National Statistics released the year over year Consumer Price Index (CPI) that measures the changes in the price of goods and services acquired by consumers.
Since the CPI basically measures the inflation level in the economy, this data is considered Forex traders as one of the most important leading indicators of the overall economic health
Last month, the UK’s CPI (y/y) increased by 2.6%, and this month the forecast is currently set at a 2.8% growth.
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 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 5.6% and the forecast for this month is also set at 5.6%.
Over the last few weeks, the GBP/AUD remained mostly range bound and traded below the resistance near 1.6400 level. However, at the end of last week, the GBP/AUD formed a large bullish outside bar that closed just below this resistance, which signaled that the sideways market might be coming to an end.
As the UK’s year-over-year CPI is expected to increase by an additional 2.6% over the last month, but the Australian unemployment rate is expected to remain unchanged at 5.6% during the last month, we believe it would likely set a bullish fundamental outlook for the GBP/AUD this week. Therefore, if the pair breaks and closes above the resistance near the 1.6400 level, it would likely attract additional bullish momentum in the market.
Hence, Australian Forex traders should look out for trading opportunities above this major resistance level around 1.6400.