AUD/USD Downtrend Likely to Continue Amid Paternally Depressing Australian Unemployment Rate

United States – Building Permits

Tomorrow, at GMT 12:30 p.m., the US Census Bureau will release 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, binary options investors consider this data to be a leading indicator of the overall economic activity in the country.

Last month, 1.09 million building permits were issued and this month, analysts are expecting the figure to come out around 1.13 million.

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.

Binary options traders 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.

Last month, the unemployment rate in Australia came out at 5.7% and the forecast for this month is currently set a bit higher, at 5.8%.

Trade Recommendation for the AUD/USD

AUDUSDDaily

Since breaking below the uptrend line on May 3, the AUD/USD has been trending downwards for the last two weeks. Last week, the AUD/USD finally found support around the important pivot zone near the 0.7240 level. Since reaching this support level, the AUD/USD has started a retracement and so far the price has gone up by around 60 pips.

As the US building permits figure is expected to come higher this month as well as the Australian unemployment rate is expected to go up slightly, we believe there is a good chance that the current bearish momentum would likely continue if the AUD/USD price clears the support around 0.7240 level.

Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the AUD/USD with their binary options brokers once the price closes below the 0.7240 level.

Recommended Broker for Australian Traders: HighLow

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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