AUD/USD Tests New High Near 0.8040 As Australian Economy Rebounds

United States – Existing Home Sales

On Wednesday, at GMT 3:00 p.m., the US National Association of Realtors released the existing home sales number. It is an annualized number of residential buildings that were sold during the last month in the country. However, this figure excludes the number newly building constructions.

The sale of an existing home usually has a wide-spread positive ripple effect in the local economy. So, collectively this figure acts as an excellent leading indicator of the overall economic health of the country. Therefore, binary options traders consider the existing home sales number to be an important data as it tends to have a considerable market impact.

Last month, the US existing home sales figure came out at 5.81 million. The forecast for this month is currently set at 5.72 million.

Australia – CB Leading Index

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

The CB leading index aggregates some of the other indicator data. So, 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.

Last month, the CB leading index increased by 0.3. If the positive trend continues this month, it would likely have a bullish influence on the Australian Dollar against other major currencies.

AUD/USD Forecast

Since December 12, 2017, the AUD/USD remained highly bullish. During the last month, it has climbed up by around 525 pips. Last week, the AUD/USD found a strong resistance near 0.8040 and formed a bearish pin bar. However, the pair appears to be bullish.

Analysts are expecting the US existing home sales figure to come lower than last month at 5.72 million. On the other hand, the Australian CB Leading Index has been growing over the last few months and it is likely to increase this month as well. 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 0.8040, 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 0.8040.

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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