China data halts rebound

Morning Report: 08.45 London

• After a strong rebound last night that saw US markets most of the loss from Monday, cautious trading has returned following poor Chinese lending data.

• The dollar index is back on the rise, causing a ripple effect across the main forex pairs.

• With their close connection to China, commodities and commodity related pairs are seeing the biggest movements this morning. Silver is down 0.74%, with gold off by 0.39%.

• The Australian pairs are hurting due to the areas commodity exports to China. The AUD/JPY is off by 0.60%, with the AUD/USD down by 0.53%.



• Away from these movements, the dollar pairs are mostly down by around 0.25%.

Coming up today:

• Coming up today we have US PPI out at 13.30, with Empire state manufacturing index released at the same time.

• UK BOE Governor Carney speaks at 14.15.

• Later, the Beige book provides another insight into the US economic condition.

Trade Idea:

• The morning sell off in the AUD/USD looks a tad over cooked, with a rebound on the cards from here.

A good way to play this could be a HIGHER trade predicting that the AUD/USD closes above 0.8925 at tomorrow’s close for a potential return of 137%.

This Daily Market Report is written by Dave Evans, Professional Trader. This is presented as an idea to stimulate binary option trading ideas and is not a financial advice.

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