ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(This is an excerpt from an article I originally published on Seeking Alpha on May 31, 2016. Click here to read the entire piece.) At the beginning of this month, I claimed an unwind of confidently long positions was imminent for the Australian dollar. {snip} Source: Oanda’s CFTC’s Commitments of Traders {snip} Source: FreeStockCharts.com At … Read more
There is nothing like a quick reversal of what is supposed to be good economic news to confirm a bearish bias. On May 31st (U.S. time), the Australia Bureau of Statistics (ABS) released its report on GDP for the March, 2016 quarter. GDP came in at a very strong 3.1% annualized rate thanks to another … Read more
In the wake of poor inflation data, a rate cut from the Reserve Bank of Australia (RBA), and then a dovish Statement on Monetary policy, speculators decided that this was not the time to have such a large net long exposure to the Australian dollar (FXA). Source: Oanda’s CFTC’s Commitment of Traders Roll forward to … Read more
Last week, the Australian dollar (FXA) was slammed by poor inflation data. Market expectations for a rate cut strengthened significantly as well. This week, the Reserve Bank of Australia (RBA) took heed and cut its cash rate from 2.0% to 1.75%. In its statement on the monetary policy decision, the RBA explained that its decision … Read more
The disappointing inflation numbers for Australia did not just take down the Australian dollar (FXA). Financial markets also rushed to ramp up the odds of a rate cut in the next policy meeting for the Reserve Bank of Australia (RBA). Source: ASX RBA Rate Indicator Even if the RBA takes a pass on a rate … Read more