EUR/USD extends its gains to its highest level in more than three months
November 30, 2020
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EURUSD Weekly Outlook: 17th December 2020 EUR/USD continued to rise at the beginning of the…
AUD/JPY Approaches Key Support Amid Sharp Increase in Japanese Final GDP
Japan –Final GDP
On Sunday, at GMT 11:50 p.m., the Japanese Cabinet Office released the quarter-over-quarter Final GDP figure. It measures the changes in the value of all products and services produced by the Japanese economy.
Binary options traders consider the Final GDP to be one of the most vital fundamental indicators of measure the production in the Japanese economy. A growing final GDP indicates increasing economic activity. Hence, it may lead to increasing interest by the Bank of Japan. Hence, growing final GDP has a positive effect on the Japanese Yen.
Last quarter, the Japanese final GDP grew by 0.1%. This month, the forecast was set at 0.2%. However, the actual figure came out much better, at 0.40%.
Australia – Westpac Consumer Sentiment
On Tuesday, at GMT 11:30 a.m., the Westpac Banking Corporation in Australia will release its consumer sentiment index. It measures the changes in the level of a diffusion index by surveying 1,200 consumers in the country.
Binary options investors consider the consumer sentiment to be one of leading indicator of future consumer spending. Because, it makes up a large portion of the Australian GDP. Hence, the large sample size of the Westpac consumer sentiment survey makes it one of the best leading indicators of the overall Australian economy.
Last month, the Westpac consumer sentiment index reading came out suggesting a 4.5% increase. If the Westpac consumer sentiment grow once again, it will have a positive impact on the Australian Dollar.
AUD/JPY Forecast
On November 14, 2019, the AUD/JPY broke below the major support level around 73.90. It also broke below the uptrend line on the same day. However, soon it started a bullish retracement. After reaching the resistance near 75.35, it resumed the downtrend. Currently, it is about to test the support near the 73.90 level once again.
The Japanese Final GDP came out much better than expected at 0.4%. On the other hand, the Australian Westpac Consumer Sentiment growth remained erratic over the couple of months. It may not grow or turn negative. In such circumstances, 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 73.90, 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 73.90.
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
