Aussie Hits Reverse Gear

Morning Report: 08.45 London

• The Australian dollar has hit a brick wall this morning after retail sales came in well below expectations. In addition to this, Chinese non manufacturing PMI continues to stick stubbornly to the 55.0 region – growth but not exactly red hot.

• The AUD/USD is off by 0.75%, with the AUD/JPY down by 0.61%.
 

• Commodities have also caught a caught, not helped by the renewed interest in the US dollar.

                               

• The euro is holding up relatively well though, helped by the yen’s recent weakness.

                               

                               
                            
Coming up today:

• Today we have UK services PMI at 09.30.

• The main ticket is the ECB rate announcement at 12.45 and following press conference at 13.30.

• In addition we have Canadian & US trade balance at 13.30, alongside Non Farm Payrolls brought forward a day plus unemployment claims and the unemployment rate.

• As if the day wasn’t busy enough, we tail off with ISM non manufacturing PMI at 15.00.

Trade Idea:

• The GBP/USD has nipped back from its recent high primarily due to dollar index strength. The dollar index has a lot to prove that its downswing is finished – as such a bullish bet could be a good play here.

                               

A good way to trade this is a HIGHER trade predicting that the GBP/USD will close above 1.7175 at Friday’s close for a potential return of 134%.

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

Summary: