Aussie Feels Pressure of Election Wobble

Morning Report: 07.00 London

• Market confidence has hit a slight wobble this morning as the Australian political impasse rolls on. Worse, retail sales and trade balance came in much lower than expected. The Aussie and New Zealand dollar are both topping the losers list this morning, with the AUD/JPY standing out.

                    

                    
                  
• The yen pairs generally are slipping lower as money switches back to safe havens.

                           

                   

• The US dollar is nudging higher.

                   

• Meanwhile, the EUR/GBP continues to tick higher with the pound underperforming.

Coming up today:

• Coming up today we have UK services PMI at 09.30.
• The main highlight is the BOE financial stability report at 10.30, with BOE governor Carney speaking at    11.00.
• US factory orders follow at 15.00.

Trade Idea:

• The Australian dollar is under pressure right now, but the current political deadlock will pass. By contrast, the UK faces years of uncertainty.
   
                       

A good way to play this is a LOWER trade predicting that the GBP/AUD will close below 1.75 in 30 days time for a potential return of 137% 

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