AUD/CAD Break Above Key Resistance If Australian Labour Market Remains Strong

Australia – Unemployment Rate

On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It 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. It is 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 Forex traders predict future interest rates and inflation situation in the country.

Last month, the unemployment rate in Australia came out at 5.4%. This month, analysts are expecting it to remain the same at 5.4%.

Canada – Manufacturing Sales

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

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

Last month, the Canadian manufacturing sales figure decrease by -0.4%. If the trend continues, it will decline further and have a bearish effect on the Canadian dollar.

AUD/CAD Forecast

Since early September 2017, the AUD/CAD remained in a tight range between 0.9630 and 0.9910 levels. However, the broader trend was mostly bearish as there was a clear downtrend line over the last several months. In the second week of December, the AUD/CAD broke above the downtrend line. Last week, it went up to the resistance near 0.9910, but failed to break above it.

The Australian unemployment rate is set to remain unchanged over the last month at 5.4%. On the other hand, the Canadian manufacturing sales declined by -0.4% last month and it may decline once again. We believe it would set a bullish fundamental outlook for the AUD/CAD this week. Therefore, if the AUD/CAD closes above the resistance near 0.9910, 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 0.9910.

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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