Preferred Strategy: The Aud reached a high of 0.7835 on Thursday and is currently near the high and will take its next direction from the China Trade Balance (Exp US$39 bio. Exports +8.8%, Imports + 13.5%) ahead of the US inflation data. Look for a choppy session, but the momentum indicators currently look a little more supportive so buying dips looks to be the way of it. A strong CPI figure from the US, hinting at a Fed rate hike in December, effectively eliminating the Australian yield advantage may see a quick move in the other direction, so caution is warranted.
Economic data highlights will include:
F: Financial Stability Report, China Trade Balance
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