This morning, the US dollar is on the rise after a volatile session yesterday on the back of ‘War’ talk with North Korea.
Gains are being made against most currencies, with the AUD/USD extending its recent losing run and the GBP/USD dropping for four straight days.
The Canadian dollar is holding up well though, with the USD/CAD making small losses on the back of yesterday’s oil price spike.
The Aussie remains weak thanks to its close proximity to North Korea, while the New Zealand dollar is performing better than yesterday’s collapse.
The yen pairs remain mixed after yesterday’s rally on the USD/JPY that ran against movements seen in other pairs.
Coming up today, we have US core durable goods orders at 13.30.
At 15.00, we get pending home sales.
US crude oil inventories at 15.30.
BOC governor Poloz speaks at 16.45.
At 21.00, we get the RBNZ rate statement - No change expected .
The Australian dollar is being hit by the twin threats of a rising US dollar and North Korean tensions.
In the short term at least, there could be more downside from here and a good way to play this is a LOWER trade predicting that the AUD/USD will close below 0.7800 in 14 days for a potential return of 170%