Gold surpasses $1900 an ounce thanks to US monetary policy
May 26, 2021
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Gold prices rose during the trading session today, in the European market, in the second…
GBP/AUD to Test Key Support Near 1.8500 Amid Forecast of Slowing Inflation in the UK
United Kingdom – Consumer Price Index
On Wednesday, at GMT 9:30 a.m., the UK’s Office for National Statistics will release the year-over-year Consumer Price Index (CPI). It measures the changes in the price of goods and services acquired by consumers.
The CPI basically measures the inflation level in the economy. Binary options traders consider it as an important leading indicator of the overall economic health.
Last month, the UK’s CPI (y/y) increased by 1.7%. Analysts are expecting it to grow at a high pace, at 1.6%.
Australia – Unemployment Rate
On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics 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 Australian economy. It is because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. This is a lagging indicator. But, analyzing this data can help Forex traders predict future interest rates. Also, it can help forecast inflation situation in the country.
Last month, the unemployment rate in Australia came out at 5.2%. This month, analysts are expecting it to remain unchanged at 5.2%.
GBP/AUD Forecast
On October 11, 2019, the GBP/AUD broke above the key resistance around the 1.8500 level. Over the last month, it climbed up by around 575 pips. However, in the last two weeks, a bearish retracement started. Consequently, it fell near the 1.8500 level again. The pivot zone around the 1.8500 level should now act as a support.
The UK’s Consumer Price Index (CPI) will likely grow at a slower pace compared to last month. On the other hand, analysts are expecting the Australian unemployment rate to remain unchanged at 5.2%. We believe it would set a bearish fundamental outlook for the GBP/AUD this week. Therefore, if the GBP/AUD closes below the support near 1.8500, 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 1.8500.
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
