AUD/CHF Bulls to Test Key Resistance Again as Business Confidence in Australia Surges

Australia – National Australia Bank (NAB) Limited Business Confidence Index

On Monday, at GMT 1:30 a.m., the National Australia Bank (NAB) Limited released its monthly business confidence index figure. This figure measures the level of a diffusion index based on a survey of 350 businesses in Australia.

The survey asks respondents to rate the current business environment in Australia. Businesses are the first to react to changing business conditions. So, binary options traders consider it as a leading indicator of the overall economic health in the coming months. It is because the level of their sentiment can signal optimism and business confidence in the economy.

Last month, the NAB business confidence index reading came out at 8. This month, the reading turned out at 10 and indicated bullishness in the Australian Dollar against other major currencies.

Switzerland – Foreign Currency Reserves

On Tuesday, at GMT 5:45 a.m., the Swiss National Bank will release its foreign currency reserves figure. It measures the total value of foreign currency reserve held by the central bank.

The currency reserve usually goes down when the Swiss National Bank tries to defend the rate of the Swiss France in the open market. It happens when the demand for the CHF is low. Hence, this figure can indicate how actively the central bank is participating in the market. Therefore, binary options investors consider this an important fundamental indicator of the CHF’s future directional movement against other major currencies.

Last month, the Swiss foreign exchange reserves figured came out at 738 billion. This month, analysts are expecting the figure to come out at 757 billion.

AUD/CHF Forecast

Since March 2, the AUD/CHF remained highly bullish and climbed up by around 330 pips. It also formed two well-respected uptrend line in the process. However, after reaching near the 0.7550 level, it found a strong resistance. Over the last two weeks, the AUD/CHF retraced back to the trend line and mostly traded sideways.

The Australian NAB business confidence index just increased from 8 to 10. On the other hand, analysts are expecting the Swiss foreign currency reserve to increase by a small margin. We believe it would set a bullish fundamental outlook for the AUD/CHF this week. Therefore, if the AUD/CHF closes above the resistance near 0.7550, 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 0.7550.

 

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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