Yesterday, the Aussie showed a decline but turned sharply upwards today.
Yesterday we observed gap on the chart of the pair AUD/USD. As a result, the pair finished trading at around 0.7180. However, today the pair reversed after the positive data on the AIG Manufacturing for December and the Caixin Manufacturing PMI.
AUD/USD has the potential for strengthening.
In December, the AIG Manufacturing increased from 54.2 to 55.4. The Chinese Manufacturing PMI showed an increase from 50.9 to 51.9 points - the highest figure for the last three years. The oil also showed growth, which strengthened the Australian dollar. The Brent oil gained 0.49%. The Copper rises in price by 1.44%, the lead by 0.14%, the silver 0.71%.
Yields on Australian government bonds are reduced. This trend has a strong fundamental support, even today's US data, which is expected good, may not be able to reverse the Aussie, and only stop. In the near term, it is likely the pair AUD/USD is expected in the range of 0.7245 - 0.7280.
How to trade binary
During today's Asian session, the Australian dollar has strengthened against the US dollar. The buyers will focus on consolidation above 0.7238. Above this level, we can expect the growth in the area of 0.7259. The sellers will expect a return of the pair AUD/USD at 0.7219 support area, a break of which will help to decline to 0.7187. We would buy Put options if the AUD/USD falls below 0.7210. This scenario would be invalidated if the pair goes above 0.7238, in which case we would go for Call option with the end of the expiry.
Target price: 0.7210
Expiry time: 21:00 GMT