Today’s Key Market Drivers: 2nd November 2018

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The Aussie Dollar rocketed higher on Thursday following the 3rd largest Trade Balance numbers on record that showed a trade surplus of over $3 Billion Dollars for the month of September. August Trade Balance numbers were also revised higher and the Aussie Dollar rallied close to a cent and a half, its biggest one-day rally in over 18 months. Rising commodity prices and a slightly better than expected China Manufacturing number also helped the local currency. My revised higher profit target for my long AUD v USD trade was hit and whilst I did sell down some volume in the morning the strong rally and higher profit target still made for a worthwhile and profitable trade.

The Pound also rallied strongly throughout Thursday after it was announced the UK and European Union were close to reaching a Brexit deal on Financial Services. No deal has been officially announced and the move higher on the Pound goes to show how strong a market move can be when based purely on a rumour. The Bank of England announced its November policy statement leaving the official cash rate unchanged at 0.75%. BOE Governor Carney speaking to the press afterwards said that if a Brexit deal can be done interest rates will likely rise at a faster pace. He also said that he thought it likely a Brexit deal would be done by the March 19th deadline. The Pound has a huge amount of room to the upside in 2019 once a Brexit deal is done and as UK interest rates continue to rise. The BOE has already put the official cash rate up 0.25% in 2019 and you can expect to see further interest rate increases next year and a higher Pound.

“Trading Mastery, Noosa Heads March 16 – 18 2019. More detail in Friday Live today.”

The US Dollar usually struggles when there is a strong risk-on sentiment which simply means traders are buying back into currencies such as the AUD, NZD and emerging markets and that’s what we saw throughout the US trading session. Today sees the release of the official US job numbers for October and if history is any guide traders who have been long on the US Dollar may sell down some of their holdings leading into the statement and the weekend. What we often see through the Asian and European trading sessions today is the market go sideways in anticipation of the US jobs numbers with investment banks and hedge funds not willing to place large bets until after the data release.

In other news, this Friday Aussie and Swiss Retail Sales data will be released along with the latest Canadian Unemployment numbers which are due at the same time the US job numbers 11.30pm AEST.

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.

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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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