Strong Canadian jobs, weak US jobs and weak UK manufacturing finished the week off on Friday night. Despite the weaker headline from Non-Farm Payrolls the US stock market gained again, up over another 1%. This could be attributed to the earnings season and that the Unemployment rate fell to 6.6% despite the weaker than expected headline. Energy and gold also strengthened as bond yields fell. I won’t be writing Tuesday but be aware that Aunty Janet gives her maiden testimony as the Chairwoman of the US Fed in Washington at 2am Sydney time Tuesday night followed by the Senate on Thursday night.
DATA HIGHLIGHTS TODAY – Japanese Current Account
AUDUSD – A HHHL but Doji bar in a sign of weakness against the other majors that all rose strongly against the greenback. This could be the start of the rollover back south again, be patient and wait for the sellers to show their hand.
EURUSD – A strong HHHL and here we go back over the 50ema. Really too hard to find a direction with this one. Stay away.
GBPUSD – Bullish bar and we are now long and into the trade, good strength despite minor drop in manufacturing data which has headlines saying lower rates for longer.
NZDUSD – Also a bullish bar but more like the Euro, directionless and range bound.
USDCAD – Technically a low test bar but good to see it break out of the mini range and close under it. Should continue to play this pullback in the short term.
USDJPY – Rather volatile over the NFP’s but ended as a buyer bar with a HHHL that tagged the 50ema. Expect this to also rally and retest the fib level at 105.57.
GOLD – Still tap tap tapping at that ceiling. Not sure what the catalyst will be for gold (AGSP3??) but it is building for a move soon.
BITCOIN (from Mt.Gox exchange) – Got smoked another $200 as the exchange stopped withdrawals due to technical issues, elsewhere on other exchanges the price move wasn’t as drastic. Last at $642
David Long / Proprietary Trading Manager