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AUD/USD Trading - US CPI and industrial production - 16 Aug 2016

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AUD/USD Trading - US CPI and industrial production - 16 Aug 2016
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On Monday, the Aussie returned to Friday's range.

Yesterday the Aussie was supported due to rising oil prices. The iron ore made several unsuccessful attempts to gain a foothold above $60.

Today the Reserve Bank of Australia released the minutes from the last meeting. The Protocol noted the economic growth, but with the caveat that growth came in the peak of economic activity.

To date, the probability of lowering rates in September is 53%. The new motor vehicles sales decline by 1.3%.

In the US the Core CPI is forecasted to add 0.2% in July (year on year unchanged at 2.3%), the CPI is expected with zero growth. We also expect the growth of industrial production by 0.3% after rising by 0.6% in June.

The housing starts are expected at 1.18 million against 1.19 million in June, but the Building permits may increase from 1.15 million to 1.16 million. In the evening, representatives of the Fed's Lockhart and Bullard have speech. Perhaps we'll see hints of the Fed FOMC minutes, which will be published tomorrow.

How to trade binary

We would buy call options if the pair AUD/USD rises above 0.7730. However, it should be noted that the attempt to break the level of 0.7730 may be unsuccessful and the pair can reverse. In this case, we would buy put options on the mark of 0.7723. We also would buy put options if the pair falls below 0.7660.

Expiry time: 20:00 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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