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AUD/USD Trading - US building permits - 16 Dec 2016

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AUD/USD chart 16 Dec 2016
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Yesterday the Aussie continued to decline in the general trend of the US dollar strengthening.

However, the Australian dollar lost only 50 points. Declining, but still trading at high prices, commodities maintained the Australian dollar yesterday.

We expect the sideway trading today.

Today, there was a small panic on the debt market of China - investors began to get rid of bonds on fears of a rate hike in China. So, the trading had to be stopped, but the yield on 5-year government bonds managed to grow from 2,983% to 3,112%. It seems China will have to raise the rate to keep the Yuan as the government sells the reserves.

In the US, the housing starts are forecasted at 1.23 million in November, against 1.32 million in October. The number of building permits is expected at 1.24 million against 1.26 million a month earlier.

How to trade binary

The continuation of downward movement is possible after the breakdown of 0.7330, in this case, the target - 0.7274. The short-term upward movement is possible in the range of 0.7390 - 0.7419. We would buy Put options if the AUD/USD falls below 0.7330. This scenario would be invalidated if the pair goes above 0.7390, in which case we go for Call option with the end of the expiry.

Asset: AUD/USD
Direction: Put
Target price: 0.7330
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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