NAB business conditions jumps to a 9-year high
The Australian dollar was seen posting steady gains on Tuesday after data suggested that business conditions improved strongly in the nine-years to January. Data from the National Australia Bank's (NAB) business conditions index showed an increase from +9.9 registered previously to +16.2 in January marking a 9-year high in the index. The NAB's business confidence index rose to a three-year high of +9.8 in January from +5.7 previously.
Australian economy jump
Economists said that the global factors was one of the main reasons for the jump in the economy despite the domestic conditions staying flat amid concerns of slowing growth. The Australian economy posted a contraction in the third quarter with concerns that unemployment was also rising.
The RBA was seen holding interest rates steady at its meeting earlier in February amid a slower pace of increase in inflation. Later this week, the monthly jobs report will be coming out as well but unemployment rate is expected to remain unchanged at 5.8%.
AUDUSD has maintained its gains on the positive news but price action has been trading flat within 0.7686 and 0.7610 since the past two-weeks as a half. The Stochastics on the 4-hour chart shows the oscillator failing to confirm the highs in price, which could indicate a snap back to the lower end of the range at 0.7610
How we trade binary?
Look to purchase daily PUT options in AUDUSD at 0.7686 - 0.7685 region which is unlikely to be breached any time soon. The sideways ranging price action is expected to continue thus warranting daily PUTs for a 21:00 GMT expiry time. The resistance at 0.7686 is likely to see AUDUSD retest the lower end of the range at 0.7610.
Target price: 0.7686
Expiry: 21:00 GMT