AUD/CHF Downtrend Likely to Continue If Australian Private Sector Credit Misses Estimate

AUDCHF Forecast for Australian binary options brokers

Switzerland – KOF Economic Barometer

On Monday, at GMT 7:00 a.m., the KOF Economic Research Agency released its economic barometer index. It measures the changes in the level of a composite index.

The KOF develops this composite index by analyzing 219 different economic indicators. Hence, binary options investors consider this to be an important fundamental indicator regarding the Swiss economy.

Last month, the KOF economic barometer index reading came out at 101.3. The forecast for this month was set at a slightly high reading, at 101.6. However, the actual reading came out much lower, at 101.1.

Australia – Private Sector Credit

On Tuesday, at GMT 1:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data. It measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.

Binary options traders consider the private sector credit to be an important fundamental indicator of the Australian economy. Because borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.

Last month, the private sector credit in Australia increased by 0.2%. Analysts are forecasting that this month, it will likely to increase by 0.3%.

AUD/CHF Forecast

AUDCHF for Australian binary options - 30th July 2018

Since forming a bearish pin bar on June 6, 2018, the AUD/CHF went down by around 310 pips. After reaching the 0.7275 level, it found a strong support. Consequently, the pair started a bullish retracement. However, after the 0.7450 level acted as a resistance and the AUD/CHF formed a downtrend line around that area. Over the last few weeks, the AUD/CHF has resumed the downtrend and currently testing the support near the 0.7315 level.

The Swiss KOF economic barometer reading came out at 101.1, much lower than last month. On the other hand, analysts are expecting the Australian private sector credit to expand by around 0.3% last month. If it misses the estimate, we believe it would set a bearish fundamental outlook for the AUD/CHF this week. Therefore, if the AUD/CHF closes below the support near 0.7315, 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 0.7315.

HighLow – Top Australian Binary Options broker to trade AUD/CHF

Best Rated Broker: HighLow

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

LinkedIn Google+ 

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

Leave a Reply