Sell AUDUSD | Current Market Sentiment

Posted On 13 Jan 2016

Our trade call is to sell AUDUSD at market with a stop above 0.7050. The aim is to be at breakeven before Australian employment release in Thursday’s Asian session. If crude oil inventories cause a strong rally in WTI then this trade may need to be cut, depending on personal risk preferences and own analysis. These sentences are fixed, but the market is not – be dynamic with new data. Target around 0.6950.

Current Sentiment:

Yesterday’s NY session saw the short-term rally in WTI capped and subsequently further downside. The CAD followed suit with CADJPY finding support for the fourth time just above the 82 handle.

Today’s Asian session saw a dissipation of recent risk-off tones with yen pairs rallying after the PBOC fixed the yuan relatively in line with yesterday’s close, keeping the reference rate stable for the fourth consecutive day. Risk appetite was enhanced by better than expected readings on Chinese trade with exports falling only -1.4% y/y versus expectations of -8% and imports falling -7.6% versus expectations of -11.5%. This gave risk currencies such as the AUD an extra boost and saw further weakness in the safe-haven yen. AUDJPY was up 200 pips from yesterday’s lows.

Today’s London session is again very light which suggests intermarket correlations, risk sentiment and technical levels will be the main driver of price direction.

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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"]www.facebook.com/JarrattDavisForex/[/social] [social type="twitter"]https://twitter.com/jarrattdavis[/social] [social type="google-plus"]https://plus.google.com/+JarrattdavisForexTrader/[/social] [social type="youtube"]https://www.youtube.com/user/JarrattDavisForex[/social]