AUD/CAD Uptrend Likely to Continue Amid Increasing Housing Prices in Australia

Australia – House Price Index

Tomorrow, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the House Price Index (HPI), which measures the changes in the selling price of houses in the 8 state capitals in Australia.

Since rising house prices indicate that investors are confident about purchasing houses and vice-versa, it can binary options traders consider the HPI to be a leading indicator of investor confidence in the country. The HPI is usually released every three months in a quarter-over-quarter format.

Last month, the Australian HPI suggested that house prices in Australia’s 8 state capitals have increased by 4.7% and the forecast for this month is set at an additional increase of 2.0%.

Canada – Manufacturing Sales

Later, at GMT 1:30 p.m., the Statistics Canada will release the month-over-month manufacturing sales data, which measures the changes in the total value of sales made by Canadian manufacturers over the past month.

Since changes in manufacturing sales affect the manufacturers’ future decisions regarding hiring, corporate spending, and overall investment climate in the country, binary options investors consider the manufacturing sales data to be a leading indicator of the Canadian economy.

In November, the Canadian manufacturing sales figure decreased by 1.5%. If the figure comes out positive, it may help increase the valuation of the Canadian Dollar this week.

Trade Recommendation for the AUD/CAD

AUDCADDaily

Since the second week of November, the AUD/CAD remained in a strong uptrend that formed a well-respected uptrend line over the last one month.

Last week, the AUD/CAD found strong resistance around the 0.9940 area and the price retraced back to the uptrend line.

As the Australian house price index is expected to continue increasing, there would be a high possibility that the AUD/CAD uptrend would soon resume. Especially, once the AUD/CAD price closes above the last week’s high, it may attract additional buyers in the market.

Under the circumstances, it would be recommended that traders consider placing a CALL order for the AUD/CAD with their binary options brokers once the price closes above the 0.9940 level.

However, since the 1.0000 level is a Big Round Number, conservative traders may wait for the price to clear this resistance level prior to placing the CALL order.

Recommended Broker: HighLow.net

About our Forex and Binary Options Analyst:  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

LinkedIn Google+ 

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

Leave a Reply