Close Open Orders: 2008-10-28 15:30
No trade today as AUD/USD did not make another attempt to to go lower, instead finding buyers above .6000. Risk appetite grew across the board during today’s trading session as equities found buyers and after the Bank of Japan announces they will sell Japanese Yen to help their exporters.
So, no trade today as risk appetites may continue to grow in the very short term.
Close Open Orders. No trade.
Trade Idea: 2008-10-27 23:32
I have a one hour chart pulled up on AUD/USD and it appears we have a descending triangle forming. This is a bearish pattern, especially in a downtrend, and with current sentiment still against the Aussie we might be looking at another leg down for the pair.
The main themes in this environment going against the Aussie continues to be carry trade deleveraging (selling higher-yielding currencies bought using lower-yielding currencies) and the rapid slowdown in global growth. The latter is especially damaging for the Aussie because as growth slows, so does the demand for raw materials (raw materials account for approximately 70% of Australia’s exports).
So, I’m looking to sell short on a break below the triangle. Here’s what I’m going to do:
There’s no major news for the Aussie in the upcoming trading sessions, but we do have some data out of the US later, most notably the Consumer Confidence number at 10:00 am EST. Stay tuned!