The market sentiment keeps driving the market around
Skerdian Meta • 1 min read
Today the economic data has been very light with the only a few pieces of it with very light impact on the forex market. In the first hours of the morning the core machinery orders fell 1.4% in Japan and the home loans declined by 1.0% in Australia. During the European session, the data showed that the industrial production declined by 0.6% last month.
So, the economic data has been negative and although it was of low importance it has sparked a risk aversion sentiment in the forex market. The risk currencies such as the commodity Dollars have been on the retreat, which the reason we opened the AUD/USD sell forex signal a while ago. It just hit take profit.
USD/CAD has found support at the 20 MA on the hourly chart
During such times the Japanese Yen would benefit because it has a reputation for being a safe haven and we all know that safe haven currencies benefit during risk aversion periods in the forex market. But, the Japanese PM Abe announced additional monetary easing steps and the Yen has been on the backfoot since then. We opened another buy forex signal in USD/JPY and hope it goes well.