- The Australian dollar remains under pressure, in part due to sharply lower iron ore prices.
- It has moved back above the 77 cent level against the greenback in recent trade, recovering from a multi-month low struck in Asia.
- The economic data and events calendar is fairly quiet on Tuesday, pointing to sentiment and technicals dictating direction.
The Australian dollar remains under pressure, suffering large declines against most major currency pairs on Monday. However, after falling to lows not seen since late last year during Asian trade, the AUD/USD is now back above the 77 cent level courtesy of another bout of broad-based US dollar weakness. Read More @ https://www.businessinsider.com.au/aud-australia-dollar-iron-ore-brexit-negotiations-2018-3
TRUMP GOING AHEAD WITH CHINA HEAD ON FOR $60BN TARIFF AND YELLEN ADVISE TO JEROME POWELL – Yellen Says Gradual Fed Rate Hikes Are Needed to Prevent Overheating – WE ARE FOR THE USD THIS THURSDAY FOMC.
Former Federal Reserve Chair Janet Yellen said higher interest rates will be needed to keep the U.S. economy from overheating, though the pace must be calibrated to allow inflation to rise to the central bank’s 2 percent goal. “I think the Fed should and has been gradually raising rates to try to stabilize the labor market, to bring down the pace of job growth to a sustainable level to avoid the economy overheating,” Yellen said Monday in Philadelphia. Read More @ https://www.bloomberg.com//news/articles/2018-03-19/yellen-says-gradual-fed-rate-hikes-needed-to-prevent-overheating
GOLDMAN HAVE A DIFFERENT VIEWS – Goldman Sees ‘Financial Fragility’ Rising in Markets
“Future liquidity disruptions may amplify price declines when the current cycle turns,” wrote Charles Himmelberg, Goldman’s co-chief markets economist. “Trading liquidity may be worse than it looks because trading volume in many major markets is increasingly dominated by more speed and less capital.” The warning on fragility came days after the bank said in a note Friday that investors need to get used to lackluster returns as volatility picks up and stocks and bonds move more in tandem with each other. The selloff in U.S. technology stocks Monday sent the VIX futures curve into backwardation, a telltale sign that the market is under stress, as near-term contracts became more expensive than longer-dated counterparts. Read More @ https://www.bloomberg.com//news/articles/2018-03-19/goldman-sees-financial-fragility-rising-amid-market-breakdowns
WHAT IS THE USD INDEX SAYING?
USD HAS TAKEN A GOOD CORRECTION YESTERDAY WITH ALL THE SURPRISES FROM UK & EURO – WE ARE LOOKING AT THE USD HEADING BACK TO $90 TODAY.
TODAYS’ NEWS THAT MIGHT AFFECT YOUR TRADES.
- 8.30am – Expecting the RBA to maintain dovish for a cheaper currency for trade with their partners.
- 3.00pm – German PPI – an important news for EURO – we are expecting a good data. We maintain BUY for EURO.
- 5.30pm – UK will release CPI data and we are expecting a good data – GBP will have a massive volatility and in favor of the GBP.
- 6.00pm – German will release ZEW Economic Sentiment – this will create a good volatility for EURO – we are in favor of buying EURO.
- 11.00pm – Euro will release the Consumer Confidence and it looks like it will be favor of the EURO.
We watching the market cautiously as the FOMC is around the corner. Maintain good Money Management and always be conservative during this major news releases.
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