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August 26, 2021
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Bitcoin continued to trade around $47,000 in the past 24 hours after falling to a…
AUD/CHF Bears Takes Control Amid Forecast of Growing Swiss KOF Economic Barometer
Australia – Consumer Price Index
On Wednesday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the quarter-over-quarter consumer price index (CPI) figure. It measures the changes in the price of goods and services bought by Australian consumers in the last quarter.
The Australian central bank uses the consumer price index primarily as a tool to measure inflation. Any significant change in the CPI often makes the Forex market extremely volatile. Also, the inflation at the retail level has a big influence on the central bank’s future monetary policy. Hence, binary options traders consider it to be a leading indicator of the Australian economy.
Last quarter, the Australian consumer price index decreased by 0.5%. The forecast for this quarter is set at an increase of 0.6%.
Switzerland – KOF Economic Barometer
On Thursday, at GMT 9:00 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 investors consider this to be an important fundamental indicator regarding the Swiss economy.
Last month, the KOF economic barometer index reading came out at 96.4. The forecast for this month is set at a slightly high reading, at 96.5.
AUD/CHF Forecast
The AUD/CHF broke below the uptrend line on January 6, 2020. Over the last few weeks, it fell by around 130 pips. Last week, the pair started a brief retracement. But, failed to break above the resistance near 0.6660. Consequently, it resumed the downtrend and approaching the next support level around 0.6585.
The Australian Consumer Price Index will likely come out higher than last month. However, analysts are expecting the Swiss KOF Economic Barometer to rise from 96.4 to 96.5. 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 0.6585.
Market Analyst / Trading Consultant . 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 about various tech and financial topics. You can reach him at contact@asifimtiaz.com
