Heavy Losses For Aussie As Building Approvals Slip 

Morning Report: 08:30 London

• The Australian dollar is under heavy pressure this morning after building approvals came in well below estimates and inflation nudged slightly lower. Company operating profits came in above estimates, but the damage has been done.   

                             
                                                                                                                                        

• The AUD/USD is off by 0.60%, the NZD/USD by 0.43% and the AUD/JPY by 0.40%.

• Stock markets are holding on to the highs, but are slipping back slightly this morning.

                  
                             

• Elsewhere, the yen pairs are nudging higher, with the exception of the EUR/JPY which is lagging.

• The euro is showing continued under performance this morning ahead of German CPI figures expected later.

                             
                                                                                                                                                        
Coming up today:

• Coming up today we have UK manufacturing PMI at 09.30, with net lending to individuals released at the same time.

• From 15.00 we switch to the US with ISM manufacturing PMI.

Trade Idea:

• The Aussie dollar is showing a familiar pattern of contraction which last time preceded a heavy sell off.

                             

We could see the same here and a good way to play this is a LOWER trade predicting that the AUD/JPY will close below 94.00 in 10 days time for a potential return of 162%.

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

Summary: