Trade Recommendations for current Session
Today I’m looking for selling opportunities on AUD/USD, this is due to lacklustre retail sales figures coming from the Australian economy and prolonged negative sentiment surrounding the Australasian currencies coupled with notable USD strength.
I would be looking to get into this position following a little AUD rally back up to around 0.8700 or if feeling really patient you could wait for price action to return to 0.8750, I would be looking to place a stop loss around 0.8740 and a profit target anywhere around the 0.8650 area.
Overall Bias on this trade
The AUD fell against all of its main major counterparts following poor retail sales with AUDUSD trading close to lows not witnessed since mid 2010, fundamentally I am still bullish on the AUD long term as inflation is still at the top end of the 2-3% band, as long as that doesn’t change and inflation doesn’t start to fall I will remain bullish on the AUD long term as the RBA will have to start considering a rate increase.
However due to the increased negative sentiment surrounding the Australasian currencies at present, spurred by poor Chinese data and dovish commentary from their central banks it’s safe to say the market has no reason to start buying the AUD back in the near future.
Also bear in mind the RBA are actively trying to devalue their currency, when taking this trade please also note we have important US employment data being released later in today’s session and Aussie trade balance figures coming out early in tomorrow’s session.
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
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