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October 2, 2020
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Oil Price Weekly Outlook – 2nd October 2020 Global oil prices extended their decline with…
AUD/JPY Bullishness Likely to Continue if Australian Building Approval Rebounds
Australia – Building Approvals
On Thursday, at GMT 12:30 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 build 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 decreased by -1.1%. This month, analysts are expecting it to increase by mere 0.1%.
Japan – Final Manufacturing PMI
On Friday, at GMT 12:30 a.m., the Markit will release Japan’s final manufacturing purchasing managers’ index (PMI) figure. It measures the level of a diffusion index by surveying around 400 purchasing managers in the country.
Businesses are the first to react to changing economic climate. The manufacturing PMI is calculated based on survey questions covering employment, production, price levels, new orders situation. Also, it is based inventory conditions. Hence, binary options traders consider this data to be a leading indicator of the overall economic health of the country.
Last month, the Japan’s final manufacturing PMI reading came out at 48.5. The forecast for this month is currently set at a reading of 48.5 as well.
AUD/JPY Forecast
The AUD/JPY formed a large bullish bar on August 26. Since then, the pair has climbed up by around 270 pips. Last week, it broke above the resistance around 73.90. Later, the 73.90 level acted as support. Currently, the AUD/JPY is trading just above the 73.90 level. The next major resistance is near 75.35 level.
The Japanese Final Manufacturing PMI will likely remain below 50 this month. On the other hand, analysts are expecting the Australian Building Approvals to turn positive and grow by 0.1%. We believe it would set a bullish fundamental outlook for the AUD/JPY this week. Therefore, if the AUD/JPY remains above the support near 73.90, 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 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
