AUD/JPY Likely to Turn Bearish As Japanese Core Machinery Orders Jumped by 10.1%

Japan – Core Machinery Orders

On Sunday, at GMT 11:50 p.m., the Japanese Cabinet Office released the month-over-month national core machinery orders. It measures the changes in the total value of new purchase orders placed by the private sector with the local Japanese manufacturers. However, this figure excludes shipping related machines and utilities.

Binary options traders consider the core machinery orders figure to be an important leading indicator of the Japanese productions. It is because a rising trend of purchase orders provides an indication that Japanese manufacturers are about to increase their economic activity in order to deliver the orders.

Last month, the core machinery orders figure suggested that purchase orders decreased by -3.9%. The forecast for month was set at an increase of 2.5%. However, the actual figure came out much better than what the market was expecting, at 10.1%.

Australia – Unemployment Rate

On Thursday, at GMT 1:30 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 investors 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.  This is a lagging indicator. But, 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 5.6%. This month, analysts are expecting it to remain unchanged, at 5.6%.

AUD/JPY Forecast

Since February 2018, the AUD/JPY remained range bound and traded sideways between the 81.50 and 84.50 levels. Last week, the pair once again tested the resistance near the 84.50 level but failed to break above it. Consequently, it fell towards the pivot zone around 83.40. Currently, it is trading just above the 83.40 level.

The Australian unemployment rate is expected to remain unchanged at 5.6% over the last month. On the other hand, the Japanese core machinery orders just jumped by 10.1%. We believe it would set a bearish fundamental outlook for the AUD/JPY this week. Therefore, if the AUD/JPY closes below the support near 83.40, it would likely attract additional bearish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities below this major support level around 83.40.

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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