Chinese Export Data Boosts Markets
China’s exports rose 14.1 percent last month. Imports also increased 6 percent. Both beat analyst’s expectations. Australia’s ASX 200 rose 14.9 points to 4723.00 on the back of the positive data and reversed earlier losses. The major mining stocks closed mixed, while the major bank stocks all closed on the positive.
Aussie Dollar Powers Thru 1.05 Level
The Aussie dollar made a big push thru the 1.05 level and was last trading at 1.0563 to the US dollar, up 50 pips. The positive data out of China and overall positive global sentiment is what’s keeping the Aussie dollar stronger. The outside markets are having more of an influence on the Aussie than the weak economic data in Australia. As I said yesterday, a market that won’t go down on bad news is a bull market. Stick to the binary calls on the Australian dollar, except when trading the New Zealand dollar. The New Zealand dollar is more attractive than the Aussie.
Yen Continues Weakness
The Japanese yen weakened again against the US dollar and its major trading peers. Prime Minister Shinzo Abe and Bank of Japan Governor Shirakawa pledged to hold regular meetings to combat deflation and weaken the yen. The yen has weakened substantially and that’s without intervention. If the BOJ were to intervene in the currency market, it could weaken the yen even faster. Binary traders need to keep playing the short side as the yen is in a bear market. Buy the dollar and sell the yen is the trade and binary dollar calls against the yen is the place to be.
The Nikkei 225 rose 74.07 points to 10,652.60. As the yen weakens, that’s positive for Japanese exporters and exporter’s profits. Continue to play binary calls on Japanese stocks as the rally looks set to continue. Many analysts see Japanese stocks rising 13% or more in 2013.
Crude Oil Poised To Breakout
Crude oil has been trapped between $92 and $94 for the past few days. US crude was last trading at $93.64, up 54 cents. A break thru $94 is a technical breakout and binary options traders need to play that breakout. Crude will likely test $95 after and the next target is $100. The recent positive economic data is supporting the bull side. Right now look at the outside markets to trade crude as they’re having more of an influence over the price.
Big Grain Report Friday
Corn continues to inch higher ahead of Friday’s very important US Department of Agriculture report. Drought has had a big effect on supplies and many analysts see prices heading back to the $8 level. Corn futures were last trading under $7. Binary traders need to look at playing the binary calls in the corn market as the price continues to go up. Even if corn sells off on the news, I expect traders and end-users to buy the dip as supplies are low.
Platinum Prices Breaking Higher
Platinum prices have broken thru key psychological number of $1600. Platinum was last trading at $1609.70, up $9.70. Platinum looks to be the most attractive metal in the metals market with this breakout. The market looks poised to run higher and binary calls look to be attractive to binary traders. The next target is $1650 for platinum prices.
As always, good luck trading and be sure to check back for the latest updates!
