Brian Twomey
Brian's Investment
Problem pair USD/JPY is not only a mislocation dilemma but a correlation predicament. AUD/USD correlations to its cross run as correlational correct but USD/JPY permeated AUD/USD and AUD cross pairs. If USD/JPY indulged itself inside AUD then it assumed USD/JPY fixated inside NZD, EUR and GBP.
The question is what is the USD/JPY price driver rather than what drives AUD. Correlations are factored from MA and AUD/USD trades above 0.7647 and USD/JPY above 106.00's. A correlational break would change if AUD/USD breaks below.
AUD/USD vs Cross pair correlations
AUD/USD Vs AUD/JPY +93%.
AUD/USD Vs AUD/CHF +91%.
AUD/USD Vs AUD/CAD +78%.
AUD/USD Vs AUD/NZD +45 %.
USD/JPY vs AUD
USD/JPY Vs AUD/USD +70%.
USD/JPY Vs AUD/JPY + 90%.
USD/JPY Vs AUD/CHF +92%.
USD/JPY Vs AUD/NZD +96%.
USD/JPY Vs AUD/CAD +15%.
USD/JPY longs and shorts are the exact same trades as longs and shorts to AUD.
USD/CAD vs S&P's and toronto Index
USD/CAD rose 161 pips yesterday, a 1.3% increase to 0.015486 as a decimal while Toronto dropped 146 points or minus 0.772% or as a decimal -0.00772. Normally, Toronto is a big mover index and trades 3 and 400 pip days. Its outperforms daily USD/CAD.
The S&P bottom today is located at 3895.88 and 3859.30. USD/CAD bottom is located at 1.2435 and 1.2450. Toronto bottom today is located at 18742.28. The S&P's lack movement and USD/CAD generally outperforms the S&P's.
Both stock markets open at 9:30 am EST. The BOC releases interest rates at 9:00 am and the day is set for Toronto and USD/CAD until the famous BOC Noon Day then Ottawa 12 pm.
Yesterday, USD/CAD traded from 0.012435 to 0.012525.
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.
Recommended Content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
GBP/USD consolidates above 1.2500, eyes on US PCE data
GBP/USD fluctuates at around 1.2500 in the European session on Friday following the three-day rebound. The PCE inflation data for March will be watched closely by market participants later in the day.
Gold clings to modest daily gains at around $2,350
Gold stays in positive territory at around $2,350 after closing in positive territory on Thursday. The benchmark 10-year US Treasury bond yield edges lower ahead of US PCE Price Index data, allowing XAU/USD to stretch higher.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.