Aussie Boosted On China Play

Morning Report: 08:45 London

• The new week has started on a positive footing across Asia as Japanese equities hit three month highs. China export data rose by a more than expected 7%, helping the Australian dollar to pump higher.

• The AUD/USD is up 0.27%, with the NZD/USD not far behind.                                                

                             
                  
                             

                             
                                                                                                                                                        
• The positive start from Asia has not transferred to the US, as the S&P 500 backs off from the highs and the dollar index remains its trend line.

                             

• In Europe, FX volatility continues to drop, with the latest Deutsche Bank FX volatility index dropping to its lowest level since 2007. This low level of activity will continue today with bank holidays across Europe.

                            

Coming up today:

• Today is particularly light on the economic data front, with Canadian housing starts at 13.15 and RBA Governor Stevens’ speech at 17.00 the only real items of note.

Trade Idea:

• The USD/JPY rejected resistance levels recently and in this low volatility environment, there may not be enough power to break those levels. A LOWER trade looks the best way to play this.

                             

A LOWER trade predicting that the USD/JPY will close below 102.25 in 3 days time could return 150%.

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

Summary: