AUD/USD will try to rise to the 0.79 area during two weeks
This week the pair AUD/USD got the favorable conditions. First, Australia has published strong economic data. Second, positive Chinese data, the growth of the gold, and the weakness of the US dollar helped the pair AUD/USD to become stronger.
Now the pair AUD/USD is trading near the high of June 2015 and has all the prerequisites for further growth.
NAB business sentiment index showed an increase to the level of 12 - a record for the last 8 years. This confirms that even decline in the mining sector could not stop the sharp rise in the service sector, industry and construction.
Soon the Reserve Bank of Australia (RBA) may intervene in the situation as the current activity in domestic consumption began after the sharp devaluation of the national currency. We think that the Reserve Bank of Australia will make the changes at the next meeting on May 3. After the meeting, the pair AUD/USD may stop growing.
We assume that the pair AUD/USD will try to rise to the 0.79 area during two weeks. But after reaching this mark, the pair will demonstrate a significant correction.
Today Australia has presented positive data on unemployment, 5.7 vs. 5.9. The employment rate showed 2,61K vs. 20K.
How to trade
We would buy CALL options if the pair AUD/USD rises above 0.7670.
Target price: 0.7670
Close price: 0.7692
Expiry time: 20:00 GMT