Sell AUDJPY – Forex Trading Tips

Our trade call today is to sell AUDJPY from 84.60 area or AUDUSD from 0.7060 area. Stops should be about 50-100 pips and the absolute maximum risked for any trade is 1%; this means 0.5% maximum on each position if you choose to sell AUD against two different counterparts. The conviction in this trade is reduced by the fact that Aussie is already at multi-year lows.

Current Market Sentiment:

In Asia, the Nikkei and Shanghai Composite both moved higher which saw a reduction in safe-haven FX and dollar-yen edge up 125 pips from yesterday’s NY session lows. In the current environment of uncertainty around the ramifications of lower Chinese growth, Asian equities provide a leading indicator for risk sentiment.

Australian GDP missed estimates showing growth of only 0.2% for the second quarter, versus the 0.4% expected. This marks the weakest quarterly growth since Q1 2011 and reinforces the RBA’s accommodative stance. The OIS prices a nearly 70% chance of a cut at the next meeting. The Aussie dipped about 40 pips making new multi-year lows, briefing breaking the 70 handle. The pair has since pared the losses but remains heavy.

Coming up we see Construction PMI from the United Kingdom. Take a look at my weekly Forex news event’s overview here in order to learn more about interpreting this particular release.

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About the Author
Jarratt Davis is the world’s ranked #2 (2008-2013) Forex Trader by Barclays FX Hedge Index, following years of mastering his art as a self employed trader Jarratt has now entered the field of education and delivers the most robust Forex education package on the market. Jarratt’s mentorship is one of the only programs on the market that is conducted by a verified professional trader. Forex Alchemy readers can get the FREE mini course where Jarratt gives away some of his secrets to success by Clicking Here... [space height="20"] [social type="facebook"][/social] [social type="twitter"][/social] [social type="google-plus"][/social] [social type="youtube"][/social]

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