The Aussie is strengthening for two consecutive days
The Australian dollar has received support in the form of rising prices of commodities. Today the Aussie also received fundamental support. The Australian services index from AIG rose from 51.1 to 57.7 in December. The Chinese Caixin Services PMI increased from 53.1 to 53.4.
The commodity prices continue to support the Australian dollar.
The Iron ore has lost more than $5 since the beginning of the year but yesterday corrected up by $0.29. The Brent oil grew by 1.63% yesterday.
Tomorrow, Australia is to publish data on its trade balance for November. The forecast assumes a reduction of the negative balance from -1.541 billion to - 0.50 billion.
Today the non-farm employment change from ADP is expected to be 171K vs. 216K in November. The number of jobless claims is expected to be 260K vs. 265K previously. If the forecast on the Jobless Claims is justified, it creates a good basis for tomorrow's non-farm payrolls data.
How to trade binary
During today's Asian session, the Australian dollar rose to new weekly highs. The buyers are trying to gain a foothold above the first resistance level of 0.7320. Its breakdown may lead to the continuation of growth in the area of 0.7344 and then to 0.7388. The return of the pair AUD/USD below 0.7285 could lead to a larger correction in the area of 0.7268.
We would buy Call options if the AUD/USD rises above 0.7320. This scenario would be invalidated if the pair goes below 0.7285, in which case we would go for Put option with the end of the expiry.
Target price: 0.7320
Expiry time: 21:00 GMT