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AUD/USD Bulls Likely to Dominate Amid Concerns Regarding the US Unemployment Rate
AUD/USD Forecast & Technical Analysis
Australia – Company Operating Profits
On Monday, at GMT 1:30 a.m., the Australian Bureau of Statistics released the quarter-over-quarter company operating profits statistics. It measures the changes in the total value of profits earned by Australian corporations over the past quarter.
Plus500 traders and global market participants consider this data to be an important leading indicator of the Australian economy. Because company earnings provide an early signal regarding future economic activities. Such as the level of corporate budget and spending and job creation. Furthermore, company earnings are directly correlated with future investments made by the private sector as well.
Last quarter, Australia’s company operating profits decreased by 1.4%. This quarter, analysts were expecting it to decrease by -6.0%. However, the actual figure suggested an increase of 15.0%.
United States – Unemployment Claims
On Thursday, at GMT 12:30 p.m., the US Department of Labor will release the unemployment claims figure. It measures the changes in the number of people who claimed for unemployment insurance over the last week.
Pepperstone CFD traders consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending have a direct correlation. An increasing number of unemployment claims indicate lower consumer spending in the economy. As it makes up the bulk of the economic activity in the United States.
Last week, the US unemployment claims figure came out at 1,006,000. Analysts are expecting it to 955,000 this week.
March 19, 2020, the AUD/USD remained in a strong uptrend. Over the last several months, it has climbed up by around 1900 pips. Last week, it broke above the short-term resistance near the 0.7250 level. Currently, it is trading above this key resistance.
The Australian company operating profits jumped by 15% over the last month. On the other hand, the US unemployment claims figure will likely reduce to 955,000. At the same time, the US unemployment rate will continue to hover above 10%. We believe it would set a bullish fundamental outlook for the AUD/USD this week. Therefore, if the AUD/USD continues to trade above the resistance near 0.7250, it would likely attract additional bullish momentum in the market.
Hence, Forex traders should look out for trading opportunities above this major resistance level around 0.7250.
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