GBP/AUD Remains Bullish Amid Improving Claimant Count Change in UK

Australia – National Australia Bank (NAB) Limited Business Confidence Index

Tomorrow, at GMT 1:30 a.m., the National Australia Bank (NAB) Limited will release its monthly business confidence index figure. This figure measures the level of a diffusion index based on a survey of 350 businesses in Australia.

The survey asks respondents to rate the current business environment in Australia. Since businesses are the first to react to changing business conditions, the level of their sentiment regarding optimism and business confidence, binary options investors consider it as a leading indicator of the overall economic health in the coming months.

Last month, in August, the NAB business confidence index came out at 5, after reaching as high as 10 in July and the declining to 1 in October. Any figure below 5 would indicate a continuation of the declining trend in the business confidence level in Australia.

United Kingdom – Claimant Count Change

On Wednesday, the UK’s Office for National Statistics will release the Claimant Count Change figure, which measures the changes in the number of people claiming unemployment-related benefits during the previous month.

Since it is the first fundamental indicator that confirms the employment situation in the UK, binary options investors consider this to be an important indicator of consumer spending in the coming months. This is because consumer spending is highly dependent on labor market situation in the country.

In October, the UK’s Claimant Count Change figure came out at 4,600 and the forecast for this month is currently set at 1,600.

Trade Recommendation for the GBP/AUDGBPAUDDaily

Although the GBP/AUD penetrated and broke above the downtrend line on October 28, a lack of bullish momentum in the market translated into a quick retracement back below the trend line.

After reaching as low as 2.1130 last week, the support level around 2.1100 pushed the price back up again and the GBP/AUD formed a bullish pin bar on last Friday.

As the UK’s Claimant Count Change figure is expected to improve this week, the fundamental outlook for the GBP/AUD would also remain bullish and complement the technical thesis behind additional bullishness.

Under the circumstances, it is recommended that traders consider placing a CALL order for the GBP/AUD with their binary options brokers once the price penetrates and closes above the 2.1490 level.

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and write on various tech and financial topics. You can reach him at [email protected]
Asif Imtiaz

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