EURUSD is falling back on the heels of more economic data
June 7, 2021
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EURUSD returned to decline at the beginning of the week to recorded its first losses…
AUD/CHF Declines Sharply Amid Steady Unemployment Rate in Switzerland
Switzerland – Unemployment Rate
On Monday, at GMT 6:45 a.m., the Swiss SECO released 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 actual unemployment rate came out at 2.3% as expected.
Australia – National Australia Bank (NAB) Limited Business Confidence Index
On Tuesday, at GMT 12:30 a.m., the National Australia Bank (NAB) Limited will release its monthly business confidence index figure. It measures the level of a diffusion index based on a survey of 350 businesses in Australia.
The survey asks respondents to rate the current business environment in Australia. Businesses are the first to react to changing business conditions. So, binary options traders consider it as a leading indicator of the overall economic health in the coming months. It is because the level of their sentiment can signal optimism and business confidence in the economy.
Last month, the NAB business confidence index reading came out at -1. This month, if the downtrend continues, it will likely have a negative impact on the Australian Dollar.
AUD/CHF Forecast
The AUD/CHF broke below the uptrend line on January 6, 2020. Over the last two months, it fell by nearly 950 points. Earlier today, the AUD/CHF experienced increased volatility. Since the opening of Tokyo session, it fell by around 390 pips. Given the concerns regarding Coronavirus in Australia, investors are increasingly looking for safe haven assets. Hence, demand for Swiss Franc will likely skyrocket in the coming days.
The Australian NAB Business Confidence came out negative last month. It will likely remain bearish. On the other hand, the Swiss unemployment rate remained at 2.3%, below the NAIRU. We believe it would set a bearish fundamental outlook for the AUD/CHF this week. Therefore, if the AUD/CHF price remains below the resistance near 0.6220, it would likely attract additional bearish momentum in the market.
Hence, Australian binary options traders should look out for trading opportunities below this major resistance level around 0.6220.
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
