AUD/CAD Appears Bullish Despite Declining Housing Starts in Canada

Canada – Housing Starts

Today, at GMT 1:15 p.m., the Canada Mortgage and Housing Corporation released its housing starts, which measures the changes in the number of new residential buildings that began construction during the past month. Although this is a monthly data, it is presented in an annualized format.

Binary options traders pay special attention to the housing starts figure because building construction produces a wide ranging ripple effect in the economy as a lot jobs are created by the housing industry in Canada.

Last month, the Canada Mortgage and Housing Corporation housing starts figure came out at 212,000 and the forecast for this month was set at 202,000. However, the actual figure came out much lower than expected, at only 173,000.

Australia – Unemployment Rate

On Thursday, at GMT 12:30 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.

Binary options 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 predict future interest rates and inflation situation in the country.

In December 2015, the unemployment rate in Australia came out at 5.8% and the forecast for January is currently set at 5.9%.

Trade Recommendation for the AUD/CAD

AUDCADDaily

Since early November, the AUD/CAD has remained in a strong uptrend, which ended on January 4, when the pair penetrated and closed below the uptrend line.

After a sharp retracement move towards the 38.2% Fibonacci retracement level of the previous bullish swing, the AUD/CAD found strong support around the 0.9850 level. Over the last two days, it has climbed up around 120 pips and broke the downtrend line.

Although the Canadian housing starts figure came down significantly over the past month, from a technical point of view, the AUD/CAD is offering an opportunity to place a CALL order.

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 0.9960 level.

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

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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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