Commodities Slip as China Takes Action


Morning Report: 08.30 London

• This morning, China acted in a surprising manner to head off a boom in lending by draining liquidity from the system. The move has caused precious metals to fall heavily, with the Australasian currencies also under pressure. 

• Silver is off by 1.28%, with gold down by 0.81%.
 

• The NZD/USD down by 0.40%, while the Aussie holds its ground.
 

• The yen pairs are on the move after the Bank of Japan maintained its expansionary policy. The yen is weaker, forcing the yen pairs generally higher. The EUR/JPY is up 0.64%, the GBP/JPY up 0.59% and the USD/JPY up 0.55%.
 

Coming up today:

• Coming up today we have UK inflation data from 09.30, with CPI expected to stay at 2% and RPI expected to remain at 2.7%. PPI input and HPI figures are released at the same time.

• From 10.00 we have German ZEW economic sentiment.

• From 13.30, we switch to north America, with US Empire state manufacturing index, TIC Long term purchases and NAHB housing market index.

Trade Idea:

• Markets are running hot at the moment and a pullback can’t be ruled out from here.
 

A good way to play this could be a LOWER trade predicting that the AUD/USD will close below 0.9000 in 7 days time for a potential return of 130%.

This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice. 

Summary: