AUD/CHF Bulls Likely Test Key Resistance as Australian Retail Sales Continued to Grow
Australia – Retail Sales
On Monday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the national month-over-month retail sales figure. It measures the changes in the total value of all sales made at the retail level in the country over the past month.
Retail sales data are considered by binary options traders to be the primary gauge of consumer spending and confidence. When consumers are confident about their future financial situation, they tend to spend more.
Last month, the Australian retail sales value increased by 0.4%. Analysts were expecting it to grow by 0.4% this month as well. However, it increased by only 0.2%.
Switzerland – Unemployment Rate
On Friday, at GMT 6:45 a.m., the Swiss SECO 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 Swiss economy. It is because one of the main goals of the Central Bank of Switzerland is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situation in the country.
Last month, the unemployment rate in Switzerland came out at 2.3%. This month, analysts are expecting it to remain unchanged at 2.3%.
The AUD/CHF broke above the long-term downtrend line on September 9, 2019. However, since then, it mostly remained range bound. Consequently, over the last several weeks, the AUD/CHF failed to break above the resistance near the 0.6840 level. Last week, it went up to test the 0.6840 level once again. So far, it has failed to close above it.
The Swiss Unemployment Rate will likely remain steady at 2.3% this month. On the other hand, the Australian retail sales went up by 0.2%. 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 0.6840, 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 0.7315.
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 firstname.lastname@example.org