Today’s Key Market Drivers: 10th August 2018
“I’m the reason why your Kiwi Dollar is lower.”
The Kiwi Dollar continued its slide on Thursday breaking to new fresh lows after the RBNZ told the market it planned to keep the official cash rate on hold until 2020. Thursday also saw the US Dollar rebound strongly against all its major rivals as traders continue to see any trade tensions as positive for the US economy and US Dollar. To put it frankly the US economy is going gangbusters and as I traveled the West Coast of the USA through June and July this year virtually every store had a sign saying “We are hiring”. Property prices are up, stocks are up and there is a head of steam behind the US economy that’s going to be near impossible to stop in the near term. Subsequently, the Euro and Pound sank to new lows through the US trading session Thursday as traders continue to maintain their dovish view of the European Central Bank and hold a pessimistic outlook about the UK doing a trade deal with Brussels before the UK officially leaves the European Union. The US Dollar will again be front and centre today with Inflation data set for release at 10.30pm AEST. If the CPI beats market estimates the likelihood is the US Dollar will rise sharply.
The Pound will also remain in the spotlight today with a slew of economic data set for release including Trade Balance, Industrial Production, Manufacturing Production, Construction Output and the latest 2nd quarter GDP figures. The selling pressure will subside on the Pound eventually but it isn’t likely to happen until a trade deal is done and the fog clears surrounding Brexit.
This morning I have entered a short position on the AUD v JPY based on a 4-hour Head and Shoulders technical set up. Price has recently broken the neckline of the formation and thus triggered the trade. More detail can be found in today’s daily video update and the Trade Time App will have the entry price, stop loss and profit target.
The LTG GoldRock office will be closed from 1.00pm AEST today for staff training so if you require support today please ensure you call or email the team first thing this morning.
Any trade updates throughout the day will be sent via Trade Time. You can also follow my daily updates on Facebook, Twitter, Instagram by searching for TrainwithAndrew. Make sure you subscribe to the Andrew Barnett YouTube channel after watching today’s Sunrise video below.
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
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