Aussie Dollar Drops After Poor Payroll Report
The Australian dollar fell against all of its peers today after a report showed that employment was down last month. The Aussie was last trading at 1.0508 to the US dollar, down 63 pips. The 1.05 level is providing support to the market right now. Even thou there’s economic weakness in Australia, the recovery in China has been supporting Australian stocks and the Aussie dollar. The ASX 200 is up 31 points to 4769.40 on expectations that more rate cuts are in store from the Reserve Bank of Australia to help Australia’s economy. Also China reports GDP figures tomorrow and expectations are that growth expanded 7.8 percent from last year, compared to a 7.4 percent advance in the previous quarter.
Chinese Stocks Drop On Profit Taking
The Shanghai Composite Index dropped 25.55 points to 2283.95 today. We’re seeing light profit taking ahead of gross domestic product (GDP) data and industrial output data out tomorrow. The index has run into some resistance at the 2300 level and I see the market consolidating before making another push higher. We see Chinese stocks rallying further this year and we advise binary traders to play from the long side and buy binary calls. If tomorrow’s data is better than expected, that will be the next catalyst to take prices higher. Traders right now are on the sidelines and booking profits. I advise binary traders to do the same until we see tomorrow’s data.
Japanese Stocks Continue Weakness As Yen Strengthens
The Nikkei 225 is heading for its biggest two-day loss since November 2011 as the yen rises. The Nikkei 225 is right now down 114.11 to 10,486.30. I view this as a temporary move as traders adjust positions. Japan’s markets are becoming very volatile due to the moves in the yen. Right now it’s a great trading market and the place to be for binary traders. The markets have overshot and I see more yen strengthening in the short term.
Crude Oil Continues To Trade The $94 Level
Crude oil continues to stay stuck in a tight range. The market right now just can’t get to the $95 level and every dip is bought. Prices will have to break out one way or another. I advise binary traders to watch crude closely and use the In and Out binary options to trade this market.
Yesterday OPEC reported that they cut production by 465,000 barrels a day. That is bullish news, but the factors they cited for the production cuts were slack demand, and that’s bearish. So we have a classic bull/bear battle over price. A patient binary trader will watch closely and wait to see which side wins and jump on that trade. That’s what I’m doing right now!
Toronto Dominion Sees Platinum Heading To $1950 This Year
To all binary traders that have been following my posts know, I’m a platinum bull. Today, Toronto Dominion Bank released a report saying that they see platinum prices reaching $1950. I agree with them. Anglo American Platinum is cutting production. There’s less supply and demand is strong. Prices can only go up with those fundamentals.
Right now platinum is struggling to get through and hold the $1700 level. We need to see a close above $1700 and that will get the bulls adding to their positions. I advise binary traders to wait for that trade as the platinum trade has been quite volatile the past few days with $50 daily swings in price occurring.
As always good luck to all binary traders and be sure to check back for the latest updates!
