Strong $GBP data today. Stronger case building for a Rate Hike sooner. China weakness is funnelling through We are looking for bounces off the trend line to get long
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Strong $GBP data + Weak CAD data.
People's Bank of China injects 50b yuan = Weakness in china to continue for medium term AUD : Dalian iron ore is limit down Chinese rebar futures limit down (and to a record low) It will be more likely now that we see a Rate cut from RBA in November... if we don't see anything from Fed soon.
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White box marks buy area.
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Fundamentals have not changed. GBP is still the stronger currency as per economic data and hiking bias starting to form. RBA still in an easing bias and more likely to add into it if AUD strengthens. Technicals Nice range created to buy dips.
Technicals on the chart Strong positive correlation between oil and cadjpy We are starting to see an appetite to buy oil again as crude levels leveling off.
Technical on the chart. BOJ will continue printing Yen until inflation target hits. US Sept or Dec hikes are coming much before BOJ hits its inflation target. Mix data currently but quality is getting better. I will target the physiological round number 130. All dips will be bought unless 118 breaks
Fundamentals : In the data prints for CAD, we are seeing minor improvements. No real reason to get dovish on it at least vs Yen. Oil still in recover mode. BOJ - "Weaker yen wouldn't be a big negative for the economy." We don't have any solid reason to be hawkish on Yen yet. QE still going and inflation targets not hit. On a technical stand point the uptrend is...
Three good guy areas as GBP strength will unlikely go away in the future. AUD still being neutral to dovish as data / RBA presents it.
We will look into Important CAD data (CPI - June 19) tomorrow to decide direction. We are neutral right now on USD until further data supports more hawkish view point. Oil does look well supported. We may just chop here for the near future.
Technicals on the chart. Looking to buy this into weakness or strength as Job Market data as showed strong econ recovery. We are shooting for parity as the target.
Technicals on the chart. See related for fundamentals reason for CAD Long. Euro is going to stay weak no matter if greece gets resolved or not as of QE. Greece is just another reason to stay short even if we get a relief rally. Long term has not changed.
Strong double bottom on the technical side. Fundamental for CAD are stronger each day with West Texas Crude prices rallying + Strong economy data prints as of late.
Fundamentals on the chart
Technical : On chart. Would target low 91s Fundamentals: AUD Weak CAPEX. Weak China data Possible another cut. BOJ Q1 GDP (sa) +1.0% q/q (expected +0.7% q/q, preliminary was +0.6%) Q1 GDP annualized (sa) +3.9% (expected +2.8%, preliminary was +2.4%) This pick-up in capex will be very well received by BOJ. it should be a yen positive as it will...