China downturn bet and some catalysts
Fundamentals
AUD
The slowdown of the Chinese economy drags down Australia which heavily exports to China, thus bearish sentiments in the AUD.
Today economic data on China is mixed: even though there were some improvements in Manufacturing PMI, the markets couldn't hold gains in the next few hours. Such minor improvements are just a drop in the sea of current broader structural deficiencies.
In addition, yesterday Australia posted weak data on Building Approvals and Construction Work Done, which are quite a catalyst for AUD weakness.
USD: "Higher rates for longer" narrative. Although the employment data is expected to come out at a decline. So In case the expectations are missed, positions should be managed in a risk-averse manner.
Technical & other
Setup: S(RTF)
Setup timeframe: 4h
Trigger: 4h
Medium-term: Down
Long-term: Down
Min target: Aug lows
Risk: 0.52%
AUD
The slowdown of the Chinese economy drags down Australia which heavily exports to China, thus bearish sentiments in the AUD.
Today economic data on China is mixed: even though there were some improvements in Manufacturing PMI, the markets couldn't hold gains in the next few hours. Such minor improvements are just a drop in the sea of current broader structural deficiencies.
In addition, yesterday Australia posted weak data on Building Approvals and Construction Work Done, which are quite a catalyst for AUD weakness.
USD: "Higher rates for longer" narrative. Although the employment data is expected to come out at a decline. So In case the expectations are missed, positions should be managed in a risk-averse manner.
Technical & other
Setup: S(RTF)
Setup timeframe: 4h
Trigger: 4h
Medium-term: Down
Long-term: Down
Min target: Aug lows
Risk: 0.52%
Trade closed manually:
The position wasn't in profit 15m before the US data release.
Trade active:
Reentered around the same price as the US data came out stronger than expected.