TradeRecommendations for current Session
Today I’m looking for selling opportunities on AUD/USD as there has been further weak data coming from Chinese GDP readings, weighing on the AUD which is now trading at levels not witnessed since March this year.
I’ll be looking to get in this position AUD/USD around 0.9050 to 0.9080 with a stop loss around the 0.9110 to 0.9130 and a profit target of 0.8990 to 0.8970.
Overall Bias on this trade
I am noting this trade following weak Chinese data which has, (coupled with a run lacklustre Aussie data in recent weeks) pushed the AUD to trade at levels not seen since Q1. Admittedly we had strong employment data coming from Australia last week which caused a brief yet notable AUD rally, however upon further examination of the data it was ascertained that the strength of the data wasn’t as good as initially expected; as the majority of jobs that had been added to the market were low paying / part time positions and therefore sharp gains made by the AUD were steadily lost in the days following the release.
When taking this trade I would strongly advise to just aim for 40-50 pips as there isn’t going to a huge range on this pair, we do have statements from the RBA tomorrow, US FOMC on Wednesday and a speech from Fed Chair Yellen on Thursday.
Due to these upcoming risk events I would solely advise taking this trade as a day trade as I expect there to be short term volatility on the pair later in the week, given the possibility of Yellen being dovish and the FOMC to be more neutral than expected. Granted the RBA are expected to be dovish/neutral but further negative/neutral sentiment isn’t anticipated to affect the AUD much further given that it is already experiencing a significant low for the currency.
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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