Aussie Hits Six Month Low

Morning Report: 09.00 London

• This morning, world markets are on the defence after a match of weak data from China over the weekend. The S&P has continued Friday’s sell off, while the dollar index is still showing no signs of turning from its bull run.                                                                                                 

                               
                                                                                                                                                                   
                               

• As a proxy for China, it’s no surprise to see the Aussie dollar hardest hit this morning, with the NZD/USD also turning lower on related fears.

                               

• The euro is showing some relative weakness, especially the EUR/JPY which is falling back as the yen regains some strength.

                               

• The USD/JPY itself has shown little movement this morning though.

                               
                                                                                                                                                                                               
Coming up today:

• Coming up today we have European trade balance data at 10.00.

• This is followed by US Empire State manufacturing at 13.30 and Capacity Utilisation Rate at 14.15

Trade Idea:

• The AUD/USD’s trajectory is hard to ignore, especially with the US dollar so far showing no signs of a reversal.

A good way to play this is a LOWER trade predicting that the AUD/USD will close lower than 0.8925 in 7 days time for a potential return of 213%.

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Summary: