Sentiment Positive as AUD Battles 0.6900
Rowan Crosby • 1 min read
Asian markets have had somewhat of a positive lead to start the session, backing up from yesterday’s upside.
Overnight, there have been a few key fundamental drivers that have kept a bit of a bid under risk assets. Yesterday, Trump pushed back some tariff increases, which sparked the markets in Asian trade. During the US session, he also suggested he was prepared to make an interim deal, which was another positive for risk. That’s despite some conflicting reports.
Then in European trade, we heard from Draghi and the ECB, and they rolled out there QE program, which if anything was less than expected and the caused some upside as well.
So to begin in Asian trade, equites are pushing higher while the AUD/USD is holding its gains. The USD/JPY is the biggest mover to date as money continues to flow out of the JPY.
Key AUD Levels
Despite the run-up in the Aussie, there is still a fair bit of resistance at the 0.6900 level and certainly at 0.7000. So we can use this to key off for the time being.
I am going to first be looking for 0.6900 to hold and for a bit of a retrace to close out the week. Even with the bull run, 0.6875 keeps being a bit of a line in the sand too.
A more high probability trade would probably be to get short when the AUD falls out the bottom through 0.6850. So that’s what I will be looking for in the coming sessions.
Like I’ve said, risk is back in favour at the moment, so we are fading strength here, but we’ve seen that these moves do retrace and that’s the play I am focused on for now.