AUD/USD Likely to Remain Bearish as US Core Durable Goods Orders Are Set to Improve

AUD/USD – Technical Analysis for Australian Binary Options Brokers

Australia – CB Leading Index

Today, at GMT 3:30 p.m., the Conference Board Inc will release the month-over-month leading index for Australia, which measures the changes in the level of a composite index based seven other major fundamental indicators.

Since the CB leading index aggregates some of the other indicator data, binary options investors consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact.

In October, the CB leading index remained unchanged by 0.0%, but over the last six months, it increased every month. If the index increases once again this month, it may have a bullish impact on the valuation of the Australian Dollar against other major currencies.

United States – Core Durable Goods Orders

On Wednesday, at GMT 1:30 p.m., the US Census Bureau will release the month-over-month core durable goods orders figure, which measures the changes in the total value of all new purchase orders made to the US manufacturers for durable goods over the past month. However, the US Census Bureau excludes goods from the transportation sector in this figure in order to offer an accurate picture.

Binary options traders consider the US core durable goods orders to be the primary gauge of production situation in the economy, as an increase in purchase orders indicates that US manufacturing activity and growth will happen in the near future. Hence, it is one of the key leading indicator of the overall US economy.

Last month, the US core durable goods orders increased by 0.1% and the forecast for this month is currently set at an increase of 0.2%.

Trade Recommendation for the AUD/USD

AUD/USD- Analysis for binary options brokers - November 21 2016

Since breaking below the major support level around 0.7530, the AUD/USD price has fallen by around 200 pips. However, earlier today, the AUD/USD seems to have found a strong support around 0.7335 level, as the pair has so far retraced back up by around 40 pips and moving towards the resistance zone near 0.7360.

As the US core durable goods orders are expected to increase by 0.2%, almost double compared to last month, it would likely have an additional bearish effect on the AUD/USD price this week. Hence, if the price closes below the 0.7335 level, it would likely attract additional bearish momentum in the market.

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 as soon as the price closes below the 0.7335 level on the daily time frame.

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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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