Today’s Key Market Drivers: 2nd October 2018
“The RBA is set to move the AUD today at 2.30pm AEST.”
The news on Monday that the US and Canada had finally reached a new trade deal saw the Canadian Dollar the automatic big winner gapping up on trading platforms and the buying pressure continuing throughout the day. Ordinarily, gaps in FX markets are closed within 24 hours but when they are not it is often a sign of things to come and I suspect that upward pressure on the Canadian Dollar will continue to build in coming months as traders’ price in their expectation of higher interest rates at the Bank of Canada.
Speaking of interest rates the RBA is releasing their October statement today at 2.30pm AEST. Traders are expecting no change to the official cash rate which will stay unchanged at 1.5%. My hunch is the RBA may deliver a more upbeat assessment of the Aussie economy and if they talk about the potential for improved wage conditions then traders are going to jump all over the Aussie Dollar and rally it very quickly. For the AUD to rally today the statement needs to mention the potential for stronger wages growth, improved economic conditions and a continued steady pullback in-house price.
The US Fed Chairman Jerome Powell is speaking in Boston today but he is unlikely to say anything that will move the US Dollar. Market moving remarks don’t usually come from these types of speeches although we must always expect the unexpected. Once the market gets over the RBA statement today there is little in the way of high impacting news until Friday’s official US and Canadian unemployment numbers. My expectation is traders are looking for an excuse to short the US Dollar with all the good economic news and interest rate news already baked into the value of the Greenback.
It’s a new trading month and this means a new opportunity to get better. What do you need to improve? How can you get better in October? If there was one area I would have you focus on is your risk management and how you position size your trades and behave once you enter positions. Discipline is something you can improve in October by applying a laser-like focus on your risk management and playing the numbers game correctly. Self-sabotage is the biggest account killer for traders. Taking trades and then messing with the outcome by adjusting stop loss and profit targets. Or worse still taking trades and not having any stop loss levels and falling in love with your own trade and where you think it’s going.
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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