Aussie Sinks on China Growth Concerns

Morning Report: 09.00 London

• This morning, markets are on the defensive renewed concerns that China’s growth rate is stalling. The S&P 500 is dipping slightly, while the dollar index pushes for the highs once again.
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• The Australian dollar is subject to some intense selling pressure, the AUD/USD extending its recent down trend. With its close links to China, the Aussie is catching the same cold.

                               

• The NZD/USD continues its down trend, linked to the Aussie pressure.

• The US dollar continues to ride high, especially against the yen, with the USD/JPY hitting a six year high.

                               

• The pound is continuing its recovery, best seen on the GBP/JPY where a resurgent pound is trampling a weak yen. The EUR/GBP is slipping back, while the GBP/USD stabilises.

                                

                                                                                                                                            
Coming up today:

• Coming up today we have the latest UK inflation report hearings at 14.45.

• This is followed by US crude oil inventories at 15.30.

• The latest RBNZ rate statement comes at 22.00

Trade Idea:

• Momentum is firmly behind the GBP/JPY and we could see more upside from here.

A good way to play this is a HIGHER trade predicting that the GBP/JPY will close above 172.50 in 2 days for a potential return of 124%.

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Summary: