AUD/USD May Turn Bullish If US Non-Manufacturing PMI Reading Goes Down

Australia – ANZ Job Advertisements

Yesterday, at GMT 12:30 a.m., Australia and New Zealand Banking Group (ANZ) released its monthly Job Advertisement figure, which measures the changes in the number of advertised jobs in key Australian cities through the major daily newspapers and web portals.

Since job advertisements usually lead to hiring new employees, binary options traders consider this data from ANZ to be a leading indicator of the employment trend in the country. The ANZ Job Advertisement figure usually has greater impact on the Australian Dollar when it is released before the Australian government’s official employment data.

Last month, the ANZ Job Advertisement figure increased by 1.5%, and this month it increased by an additional 1.5%, indicating that employers are looking to hire more workers in the coming months.

United States – ISM Non-Manufacturing PMI

Today, at GMT 3:00 p.m., the US based Institute for Supply Management (ISM) released its monthly Non-Manufacturing PMI figure, which measures the level of a diffusion index created by surveying purchasing managers. However, the ISM’s PMI figure excludes the non-manufacturing sector.

Binary options investors consider the ISM Non-Manufacturing PMI figure to be a leading economic indicator because purchasing managers have the most updated view of the economy.

Last month, the ISM’s PMI figure came out at 60.1 and the forecast for this month is set at a slightly lower figure, at 59.2.

AUD/USD Forecast

After breaking below the downtrend line on November 3, the AUD/USD fell by around 120 pips over the last month. However, as soon as the AUD/USD reached near the 0.7535 level, it found a strong support, which kept the price from falling further. In the last two weeks, the pair mostly traded sideways, where the 0.7635 level kept it from moving upwards.

As the Australian ANZ job advertisement figure is increased by 1.5%, but the ISM’s Non-Manufacturing PMI reading for United States is expected to go down to 59.2, we believe it would set a bullish fundamental outlook for the AUD/USD this week. Therefore, if the AUD/USD closes above the resistance near 0.7635, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 0.7635.

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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