All seems calm for now…
The markets started today’s asian session pretty calm. The main focus was the Australian Retail sales releases which came out better than expected which has been good for AUD so far. The good Retail sales report has given some positive expectation for the next GDP release for AUD. After Friday’s NFP report and the news that the summit between North Korea and the US is on again, the market has stepped back from the negative risk sentiment.
The more positive risk tone has placed some pressure on the JPY and CHF. However, the US decided to go ahead with their planned tariffs on steel and aluminum with the EU, Canada and Mexico. This is something to keep track of as any negative announcements from either of the parties could result in a return of the negative risk sentiment.
Our pair selection for today:
Given the AUD weakness and CHF strength we have chosen the AUDCHF as one of the pairs we will be watching closely today to look for trading opportunities.
AUDJPY – D1
AUDJPY – H1
We view this as a valid trading opportunity as long as the current risk tone stays the same. As the price as already moved quite a lot during the Asian session we would rather wait for a pullback into recent support areas before looking to go long on the pair. Keep a close eye on further developments with the Italian political scene and trade war talks as these two things can drastically change the risk on the day.
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Risk Disclaimer: Forex Trading carries a high level of risk. It is possible for traders to lose entire trading accounts if they do not know what they are doing. This post is not an enticement, signal or recommendation to buy or sell any financial instruments. All of the information in this post should only be considered as general market commentary and should never be used as trading or financial advice.
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