AUD/CHF Downtrend Likely Continue Amid Rising Swiss Producer Price Index

AUD/CHF – Technical Analysis for Australian Binary Options Brokers

Australia – National Australia Bank (NAB) Limited Business Confidence Index

On Tuesday, at GMT 12:30 a.m., the National Australia Bank (NAB) Limited will release its monthly business confidence index figure. This figure measures the level of a diffusion index based on a survey of 350 businesses in Australia.

The survey asks respondents to rate the current business environment in Australia. Since businesses are the first to react to changing business conditions, the level of their sentiment regarding optimism and business confidence, Australian binary options traders consider it as a leading indicator of the overall economic health in the coming months.

Last month, the NAB business confidence index reading came out at 5, after coming at 12 in the previous month. If the trend continues, it would likely to have a bearish effect on the Australian Dollar.

Switzerland – Producer Price Index (PPI)

On Friday, at GMT 7:15 a.m., the Swiss Federal Statistical Office will release the month-over-month Producer Price Index (PPI), which measures the changes in the price of goods and raw materials bought by Swiss manufacturers during the previous month.

Binary options investors consider the Swiss Producer Price Index (PPI) to be a leading indicator of the consumer inflation because any substantial increase in the raw materials is passed on to the buyers of the finished products by manufacturers. Hence, an increase in PPI indicates rising prices at the consumer level, which contributes to overall national inflation.

Last month, the Swiss PPI (m/m) increased by 0.3% and the forecast for this month is that it will increase by an additional 0.3% for the time being.

AUD/CHF Forecast

AUD/CHF Analysis for Australian binary options

Since breaking above the downtrend line on July 12, the AUD/CHF has climbed up by around 400 pips. However, over the last few months, it has remained range bound and traded sideways between 0.7460 and 0.7760. Last week, it found a support near the 0.7570 level.

As the Australian NAB Business Confidence reading went down last month and there is a likelihood that it may continue to fall, but the Swiss Producer Price Index is expected to go up by an additional 0.3% over the last month, we believe it would likely set a bearish fundamental outlook for the AUD/CHF this week. Therefore, if the AUD/CHF breaks below the support level around 0.7570, it may attract additional bearish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities below this major support level around 0.7570.

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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 on 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 on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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