Good morning traders,
The AUD took a nosedive after yesterday’s minutes had been announced with the content being the cutting of interest rates later this month. This does not look good for the AUD, the Reserve Bank Australia (RBA) are also waiting for things to get better before they embark on OCR. The RBA is also considering cutting loans and may revise the housing monetary policy leading to further weakening of the currency.
The North American trading session yesterday was pretty boring following the same patterns pretty much all day on the equity markets. The S&P 500 and the Dow got off to a wild start and continued on the up and onward path until close of trade yesterday eventually finishing 1% up. The currency playing field took a very different direction… the USD saw a turn in a bullish direction something we had not seen in a long time. However, the almighty USD did fight its way back up as the day came to a close. The Asian markets are losing some ground as the recovery of the USD yesterday ate into the Asian currencies in order to regain some ground lost in the past 24 hours.
On the subject of Asian currencies worthy to note are some vital events that took place yesterday, which will reflect in changes in currencies moving forward in today’s markets. The Yen (JPY) may also be set to sell-off today. Today the Bank of Japan (BoJ) are holding their monetary policy meeting and deciding to hold off on breaking news flashes and stimulus of that meeting. Generally straight after the meetings are held, which is around noon today, governor Kuroda will hold a press conference, which if he is not his upbeat self-today will see a further decreases for the Yen (JPY). Analysts are keen on hearing his commentary on his commitment to urging inflation and taking into account that the RBA will not react based on short-term oscillations in prices. Hold all trades on the JPY during these hours 03:00-04:00 GMT, as I’m sure not much movement will be seen. Recently Japan released is disappointing final GDP release of 0.4% for the 4th quarter of 2014. This was defeating as this will be taken into account in today’s meetings and seems that the Japanese will not be taking any further information into consideration.
Referring back to Crude oil, yesterday saw another drop this time to a 6-year low. As per my previous report on this subject matter, the WTI drop is still from the US crude oil inventories that continue to exert pressure on the oil price.
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Today’s Binary Trading Tip:
Due to the Crude oil making the headlines once again I would select a PUT on this commodity for today even seeking to select a more long term trade and selling crude till at least Thursday. If you wish to continue making a little ROI the PUT on the AUD and CALL on the USD. I foresee that the GBP / JPY may increase during today and I am Putting! (take not of the times mentioned above).