Stocks Recover Early Wobble

Morning Report: 07.00 London

• This morning, stock markets in China have pared early losses, with the S&P pushing back towards the 200 period moving average.

• The dollar index is unchanged as euro losses balance against dollar pair gains elsewhere.

• The Australian dollar is performing well, buoyed by the recovery in Chinese equities. The AUD/JPY is up 0.73% and the AUD/USD up 0.47%.

• The NZD/USD is travelling well in sympathy, up 0.55%.

• These moves come despite ongoing weakness in oil prices with crude well below $50.00.

                       
                                                                                                                                                                          Coming up today:

• Coming up today, we have UK GDP at 09.30.

• Canadian RMPI follows at 13.30.

• Then at 15.00, we get CB consumer confidence.

Trade Idea:

Although the AUD/USD is travelling well today, the overall trend is still lower. Until we see a significant change in commodity prices, we’re unlikely to see a sustained turnaround.

A good way to play this is a LOWER trade predicting that the AUD/USD will close below 0.7250 in 10 days time for a potential return of 149%. 

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Summary: