Trade Closed: 2008-07-30 08:34
Our trade was stopped right after the release of the ADP Employment beat the expectations of -48K jobs with a surprise read of +9k jobs gain.
Total: – 75 pips/ -1.0% loss
Trade Update: 2008-07-29 15:12
Much has been priced into AUD/USD, including concerns for further global credit tightening, falling commodity prices, and the potential for further mortgage related losses. Further downside may be limited for moment, and if the longer trend holds, this may provide the opportunity for traders to jump in on the attractive interest rate differential between the two currencies.
Trade Idea: 2008-07-23 20:08
Recent strength in the Greenback has pulled AUD/USD down to an area of potential support, giving a nice opportunity to catch the trend and a positive interest rate differential. Are buyers ready to jump back into AUD/USD?
We have a very simple chart today, as we see an opportunity to catch the bottom of the rising channel.
Recent comments from Plosser, weakening oil, and the US Government saving Fannie and Freddie has boosted the Greenback for the past couple of the days. Also, interest in gold as an inflation hedge wanes as oil drops down below $125 a barrel.
Will US Dollar continue, or will market players now focus on recent reports of how Australian CPI and growth remain strong. The RBA is also likely to remain hawkish on interest rates until CPI drops, thus supporting sentiment for a strong Australian Dollar.
My play is simple today as I look to go long near the bottom of the channel just above .9500.