Chinese markets have entered into some stability despite trade war fears, a move which some attribute to direction intervention by the Chinese government. Either way, it’s good news for the Aussie dollar which is also benefitting from better than expected retail sales. The AUD/USD is up 0.23%, building on yesterday’s gains. The AUD/JPY is also pushing higher.
The EUR/USD and GBP/USD are making small gains this morning so far, building on yesterday’s advances. The EUR/GBP has a slightly positive bias after pushing higher yesterday.
The dollar index continues to struggle at the highs, posting its second straight day of losses.
The USD/CAD and USD/CHF continue to drift lower.
The USD/JPY reversed from the highs at 111.00 yesterday, marking the second failure to breach the high. The pairs are unchanged this morning.
Gold posted a strong reversal yesterday and is continuing to climb this morning.
This morning, we have UK construction PMI at 09.30.
The USD/JPY has been rejected from the highs around 111.00, but support and resistance lines are fickle beasts.
Instead of betting on the reversal, now could be a good time to reload on bullish bets.