On Friday, the Australia's trade balance pleased investors.
In November, it reached 1.24 billion against the forecast of -0.55 billion and -1.12 billion a month earlier. But the subsequent positive US data have reversed the pair AUD/USD due to the strong labor data.
As a result, the pair AUD/USD fell on Friday, but today during the Asian trading session demonstrates growth.
On Friday, the Australian dollar also felt pressure from commodities. The iron ore lost 0.96%. The price of coal fell by 2.2% on Friday. The oil fell by only 0.14%, but, apparently, is just the beginning. Iraq has accused the Kurds in excess of production by 17% of the approved quota. It is very likely that Iraq and then the rest of the countries will soon give up on the decision to cut the oil production.
This morning, good data on construction in Australia have stopped the bearish movement of the "Aussie". The building approvals rose by 7.0% in November, against the forecast of 4.6%. However, the private house approvals showed 0.2%. The construction index from AIG increased from 46.6 to 47.0. However, we don’t see the additional factors for the strengthening of the Australian currency.
How to trade binary
If the sellers are able to overcome the level of 0.7305, the pair AUD/USD will continue to decline to the level of 0.7295 and try to overcome this level to go down to the area of 0.7256. The bulls will try to rise above 0.7331 to get closer to the mark of 0.7388. We would buy Put options if the pair AUD/USD falls below 0.7295. This scenario would be invalidated if the pair goes above 0.7331, in which case we would go for Call option with the end of the expiry.
Target price: 0.7295
Expiry time: 21:00 GMT