Before moving on, ICYMI, today’s Daily London Session Watchlist looked at an opportunity forming on EUR/GBP ahead of Brexit & stimulus news, so be sure to check that out to see if there is still a potential play!
|Equity Markets||Bond Yields||Commodities & Crypto|
|DAX: 12030.28 +3.83%
FTSE: 6224.33 +0.94%
S&P 500: 3068.98 +0.43%
DJIA: 25679.92 +0.80%
|US 10-yr 0.667% +0.005
Bund 10-YR -0.415% -0.02
UK 10-YR: 0.224% -0.008
JPN 10-YR: 0.002 +0.001
|Oil: 36.21 +2.17%
Gold: 1755.40 +0.29%
Bitcoin: 10141.46 +1.50%
Ethereum: 251.66 +2.52%
Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar for U.S. & Asia:
- API Crude Oil stock change at 8:30 pm GMT
- Australia Construction index at 10:30 pm GMT
- Australia Services PMI at 11:00 pm GMT
- Japan Services PMI at 12:30 am GMT (June 3)
- Australia GDP at 1:30 am GMT (June 3)
- China Caixin Services PMI at 1:45 pm GMT (June 3)
What to Watch: AUD/JPY
AUD/JPY has been on a tear this past week, riding higher on the “reopening trade“, and picking up speed after today’s RBA monetary policy statement and continued positive data from Australia.
And we may see even more volatility in the upcoming session with a packed economic calendar for the Aussie, most notably the Australian GDP read and the services PMI updates from Australia, China, and Japan.
For you bulls out there, the momentum is on your side, but given that AUD/JPY has rallied more than its weekly ATR of 240 pips from the week open, there is a risk that this rally may run out of steam.
With those considerations, it’s probably a good idea to wait for a reaction, and if we do see positive PMI data from Australia and China, then it makes sense to build a long position if support forms from the rising lows up to the 74.00 handle.
If that scenario does play out, on top of weak PMI updates from Asia & Australia, then shorting between 75.00 up to 76.00 makes sense if you’re looking for a counter-trend swing position.