The Australian dollar is about to break higher - some good levels to buy
After the Australian currency has survived multiple attempts to get hammered lower in tandem with the Euro, we are fairly confident that the next move will be higher, possibly above 0.9400. As there will be no substantial data from Australia this week it will all depend on the US and Chinese economic releases which are incoming.
After some minor data releases in Australia this Sydney morning, the currency has been put to a test, falling lower across the board, however in the aftermath of the data releases it managed to stage a solid rebound and tested key resistance levels to the upside.
Current levels around 0.9358 are providing a great opportunity to buy daily calls for tonight and tomorrow, with the downside bias of the market clearly shattered from the New York rally. House prices have risen at a lower than expected rate in the first quarter to mark an increase of 1.7%.
At the same time Home loans to the private sector have dropped by 0.9% and Chinese Industrial production and Retail Sales have also disappointed markedly on the consensus forecasts. All of this data has put some selling pressure in the late Asian session to drive prices as low as 0.9330.
After the bottom was marked we have seen a steady rebound after the US has reported way weaker than expected retails sales. That produced a stark rally finished with prices touching just above 0.9382. With the ongoing receding in trading activity and a drop a touch below 0.9360, we are seeing a great opportunity.
Binary options on the forex pair between the Australian to the US dollar can be purchased right now to secure a profit for tonight and tomorrow's daily expiry times. Alternatively, if we see a drop below 0.9333 we could spin towards testing the round figure at 0.9300. However for now For now this remains a remote possibility.