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AUD/USD Trading - Australian wage price index - 16 Nov 2016

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AUD/USD chart 16 Nov 2016
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The AUD/USD is trading in the range of 0.7526 - 0.7568.

Yesterday the Reserve Bank of Australia published a neutral protocol of the last meeting of the Monetary Policy Committee. The text showed balanced risks on inflation and the labor market.

It seems that the RBA won’t change the interest rate

The market's reaction was also neutral. The iron ore, as expected, retreated from the highs of the year (from $73.3 to $70), non-ferrous metals prices decreased too. Today the macroeconomic indicators have disappointed.

In October the new motor vehicle sales fell by 2.4%, the wage price index added only 1.9% y/y vs. the expectations of 2.0% y/y and 2.1% in the previous period. Taking into account the current positive expectations on industrial production in the US, the pressure on the Australian currency remains.

The US industrial production is expected at 0.2% after 0.1% growth in September. The capacity utilization rate is expected to increase from 75.4% to 75.5%. It seems that US industrial production is recovering.

How to trade binary

The downward movement is possible after the breakdown of 0.7505, in this case, the target - 0.7460, the consolidation near this level. The short-term upward movement is possible in the range of 0.7566 - 0.7595.

We would buy Call options if the pair AUD/USD increases above 0.7566. We would buy Puts if AUD/USD declines below 0.7505.

Expiry time: 21:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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