Market Update: AUD/USD Trading Up On Strong Global Data

The AUD/USD currency pair has come into strong focus as the Aussie dollar strengthens against the US dollar on strong manufacturing data, indicating a sustained global recovery.

The pair traded as high as 1.0734 in Asian trading, up 0.26% and up from a low of 1.0703. Don’t miss the opportunity to get in on the risk rally!

While manufacturing reports came in healthier than expected, the market is keeping a close eye on US employment claims at 1:30pm GMT, followed today by testimony of US Fed Chairman Ben Bernanke at 3:00pm GMT.

Here are the basics to trading the AUD/USD binary option today:

• The AUD/USD is considered a risk asset, meaning when the outlook is positive the market is bullish on the pair.
• Expectations for US unemployment claims are 373k, slighly lower than last month’s 377k. A lower figure than expected would be bullish for the AUD/USD.
• Traders can look at the AUD/USD 5 minute candlestick to trade on momentum during the hour. As volatility is expected to be high, traders can also look for reversals if new trends develop.

Trade Alert for Unemployment Claims – 1:30pm GMT

The expectations are for a reading of 373k versus last’s week’s 377k. Check the results shortly after the release from our economic calendar and look for surprise developments. Click here to open account with Tradesmarter Now!

Why is it important?

Released weekly, shows the number of individuals who filed for unemployment insurance for the first time during the past week.

Countries like Greece, Ireland, Italy and Spain are being provided €496bn (£413bn) to recover from the trouble in Europe by Bundesbank, which is a part of the European Central Banks and Germany is now holding the ECB’s plans for its own economy risks The drastic contraction of the Greek economy has played chaos with shortfall of targets. Central bankers have remained silent on their intentions for Greece but on the other side Greece’s creditors are increasing pressure on the ECB to join the bond swap being negotiated with the country;. ECB wants to see the private-sector agreement concluded before indicating its strategy, which may include forgoing profits from its Greek bonds.

In the market this is a shifting focus to the US, with weekly unemployment data and productivity and labor cost data testifying before the House Budget Committee for the state of US Economy but the euro zone crisis could worsen and dampen the continental currency. On the other hand, the Federal Reserve’s statement about maintaining low interests rates makes the dollar less attractive to investors.

After the China’s no success over increasing consumption of gross domestic product, China’s growth is steady due to Bad Debts. New loans totaled $4 trillion from past three years, which is twice the size of the Italian economy, raising concern that some of the lending to local governments and property developers are worried on the other side China’s economy expanded 10.4 percent annually for past 10 years, The economy growth at a 9.2 percent rate last year and its expansion will slow to 8.5 percent as Europe and US decreases demands.

Gold higher to the top level from eight weeks, ahead along with equities and other commodities, as global manufacturing improved, fading dollar and boosting demand for alternative investments

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