The USD was slightly stronger today and global stock markets began the week positively.
The AUDUSD moved strongly higher during the Asian session trading, which usually is followed by a reversal when the U.K. traders come on. Almost uniformly at the same time today, the majors began to decline to the USD. A short was taken on the AUD risking 9 pips for a potential 49 pips to our daily target at .7218.
Price retraced its Asian session move in a stair step manner and we closed the trade at the London close.
Both the U.S. and European economies have slowed recently and this has become a concern for traders. Although a December rate hike in the U.S. is still priced into the market, the next rate hike in 2019 is now in question. With a slowing European economy, the potential for a rate hike in 2019 is now very questionable. The good new for Britain is the E.U. accepted their Brexit proposal over the weekend but the bad news is there remains considerable doubt that it will pass in the British Parliament. Hence the GBPUSD continued downward.
Good luck with your trading!
