AUD/CHF Tests Key Support Amid Forecast of Massive Decline in Australian Building Approvals

Australia – Building Approvals

On Wednesday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the national month-over-month building approvals figure. It measures the changes in the number of approvals of new buildings.

A building permit indicates new construction work. It also suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options investors consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.

Last month, the building approvals figure increased by 12%. This month, analysts are expecting it to increase by 0.1%.

Switzerland – KOF Economic Barometer

On Wednesday, at GMT 7:00 a.m., the KOF Economic Research Agency will release 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 traders consider this to be an important fundamental indicator regarding the Swiss economy.

Last month, the KOF economic barometer index reading came out at 110.2. The forecast for this month is set at a much lower reading, at 105.6.

AUD/CHF Forecast

Since June 2020, the AUD/CHF lacked any major momentum in the market. Over the last few months, it mostly ranged between 0.6500 and 0.6725. Last week, the AUD/CHF once again fell to the support near 0.6500. However, so far, the bears have failed to close below it. Currently, it is trading just above this support area.

The Australian building approvals figure would likely to come way down to 0.1%. On the other hand, analysts are expecting the Swiss KOF economic barometer to come down from 110.2 to 105.6. 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 0.6500, 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 0.6500.

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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