Trade Closed: 2008-08-27 12:00
The Greenback could not maintain it’s strength during the Asian and European trading sessions and pushed the AUD/USD back out to my entry price at .8600. My remaining position was stopped out at breakeven.
1st Half: +100 pips
2nd Half: +00 pips
Total: +0.50% gain
Trade Update: 2008-08-26 12:00
There was enough volatility during the Asia trading session to bring AUD/USD back up to .8600 and trigger my orders short. The pair fell throughout the Euro session as the Greenback gained strength on Euro weakness after significant Eurozone data. This brought the pair all the way down to my first profit target at .8500, closing out a portion on my trade.
The pair is back up on US Dollar weakness as oil prices rise over concerns of Hurricane Gustav. This rally maybe temporary and it looks like we may see another test of .8500. I will continue to hold onto my position for now. Stay tuned and good luck!
Trade Idea: 2008-08-25 19:46
Greetings! The Aussie has taken a beating for the past month, and it looks like this week may not be any exception.
AUD/USD has fallen on the sentiment that as the Australian economy begins to slow its growth, we may see rate cuts from the RBA. Also as inflation slows and commodity prices fall, the central bank has less of a reason to keep rates up at its current level at 7.25%. Credit concerns are rising once again globally, making higher yielding assets less desirable in the short term.
In the US, data has surprised to the positive side lately, including today’s US existing home sales data. Will we see another uptick in US data with consumer confidence and new home sales later in the US session? If we do see a surprise to the upside, it could fuel a further rally in the US Dollar. If not, we could see a rally in AUD/USD, which I wouldn’t mind seeing as it would give me a better price to jump in the downtrend.
Good luck my friends!