Australian Binary Options News

RBA Statement Weakens The Aussie

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Binary traders that waited for the RBA rate decision were rewarded trading the weakness. The Aussie dollar immediately fell after the statement was released saying that there was the possibility that “would afford scope to ease policy further, should that be necessary to support demand”. The Aussie immediately fell from the 1.0440 to 1.0450 level to the US dollar to the 1.0420 level. The Aussie is presently trading at 1.0398 to the US dollar. Markets are now expecting the RBA to cut interest rates in the future, which is bearish for the Australian dollar. The ASX 200 is weak as well, down 17.2 points to 4890.30.

Weakness In Global Financial Markets Started Yesterday In Europe

Spain and Italy are concerning the markets again. There are corruption allegations against Spanish Premier Mariano Rajoy and Italian elections are next month. Former Prime Minister Silvio Berlusconi has narrowed the front-runners lead heading into the elections. He is a disruptive force in Italian politics and his policies are not favorable for euro zone stability.

The euro fell sharply from its recent high of 1.37106 and is now trading at 1.34812 to the US dollar. Look for the euro to consolidate down to the 1.34 area before resuming its march higher.

Japanese Stocks Sell Off As The Yen Strengthens

The renewed concerns about Europe are spreading into Asian markets. What we’re basically seeing is an unwinding of positions, meaning traders are booking profits in the trades that have been trending and where they have made money. Traders are using the uncertainty in Europe to exit positions and raise cash. The Nikkei 225 is down 190.43 points to 11,069.90 and the US dollar is at 92.406 yen.

Selloff A Temporary Pause

I advise traders to not see the selloff as a trend change. This is just profit taking. Look for continued euro strength, yen weakness and global stocks higher. This correction could last a few days, but market trends should continue as we head into the middle and end of February.

Commodity Markets Update

Crude oil traders booked profits yesterday as crude dropped with other risk-on assets. Gold caught a bid as uncertainty in Europe is supportive for gold prices. Gold is trading at $1676.70 and crude oil is at $96.11.

Economic Data Calendar

  • 1000 Euro Zone Retail Sales (MoM) -0.5 % forecast 0.1% prev (Euro)
  • 1500 US ISM Non-Manufacturing Index 55.2 forecast 55.7 prev (USD)

That’s really it on the data front. Watch and listen to the news for any headlines out of Europe regarding Spain and Italy. The markets are paying attention to those 2 areas right now.

As always good luck to all binary traders and be sure to check back for the latest update!