All Trade Ideas and trading scenarios found on FX360.com are hypothetical. FX360.com has not placed these Ideas in a live trading environment. Forex Trading involves high risks, with the potential for substantial losses that exceed your initial deposit and is not suitable for all persons. Past performance is not necessarily indicative of futures results.

Aussie Shows Relative Strength

Last updated 3/9/2010 3:01 AM ET (GMT -5) 4 Comments

• Share this:

Boris Schlossberg

Director of Currency Research, GFT

While both euro and pound drifted lower in Asian session today, the Aussie continued to hold ground around the .9100 figure boosted by strong business sentiment and labor data. Australian NAB Business confidence survey rose to 19 from 15 the month prior while ANZ Job Advertisements soared to 19.1% from a decline of -8.1% on January. The dramatic jump in ANZ data was the biggest gain in more than 2 years  and bodes well for the Australian employment report due Thursday at 00:30 GMT.

Ahead of the Australian labor data, traders will also get a glimpse of the Chinese Trade Balance report which is expected to compress to 7.6 Billion from 14.2 Billion the month prior. Some analysts have pointed out that an increase in the  latest measure of the Baltic Dry Goods index which has risen to 3250 from 2750 a week earlier may also prove bullish to the AUD/USD& nbsp;as it indicates an expansion in global trade.

We continue to believe that the Aussie represents the best bet on risk in the currency market and the unit  should remain well bid if the labor data on Thursday continues to show strong growth. Having consolidated its gains near the .9000 level, the Aussie is poised to make another run at the yearly highs near .9300 handle if risk appetite remains constructive in the near term.

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

The views of the authors and analysts are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com. Global Forex Trading and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

• Share this:

Comments (4)

FXDragon

March 09, 2010 at 03:59 AM ET

How about selling the news theory on jobs data?

bschlossberg

March 09, 2010 at 05:00 AM ET

Can you please clarify? Do you mean sell on the news?

Pidgeon

March 09, 2010 at 11:58 AM ET

He Means "buy the rumor, sell the news". Old quote, doesn't apply here.
What I'm more interested in is that we have a head and shoulders pattern on the daily charts centered around 9300 for the top of the shoulders. This would indicate a longer term reversal technically speaking. But all signs seem to point to a robust Aussie recovery compared to most other currencies. My question for Boris: Is it possible for a pair to ignore this type of pattern, and resume the bullish trend we've seen since March of 09? I'm bullish on it anyway, its just that pattern makes me doubt what would otherwise be a no brainer trade.

Murtadha

March 09, 2010 at 03:01 PM ET

Can we be bullish on AUD/JPY

Add Your Comment

Please login to post a comment or sign up for an FX360® account.

Loading...

About The Author

Boris Schlossberg began his Wall Street trading career more than 20 years ago at Drexel Burhnam Lambert. There, he traded nearly every type of financial product on the market in the U.S., from equities and options to stock index futures and foreign exchange. His innate ability to analyze market information and use it to trade has helped him become an industry-recognized, “go to” trading professional.

These days, whenever the markets move, many organizations turn to Schlossberg for his take on the situation. He is a weekly contributor to CNBC's Squawk Box and a regular commentator for Bloomberg radio and television. His daily currency research is widely quoted by Reuters, Dow Jones and Agence France Presse newswires and appears in numerous newspapers worldwide. Schlossberg has written for publications like SFO magazine, Active Trader and Technical Analysis of Stocks and Commodities. He is also the author of Technical Analysis of the Currency Market and the co-author of Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game with Kathy Lien. He joined GFT in 2008.