Carry Trade Back in Play?
With JPY weakening since the past 2 weeks, Fear of US Recession does not seem to dampened the appetite for Carry Trade.
With AUD/JPY Leading the race.Our Favorite Comm dollar has been on a rampage the past month, This is mainly attributed to the High risk of Inflation The Australian Economy is facing.
A rate hike early next month is anticipated.
Fundamental wise, Nothing New for The Australian Economy, a further rate hike is expected early next month.
Technically speaking, Daily Chart shows sign of Overbought. But in Time like this when Fundamentals overshadowed Technicals, Overbought level does not seem to be a concern. Although we should be a expecting a quick pullback before the Move up Continues. Most Viable Target This Week would be the November High of 0.9397.
0.9292 — R2 Daily
0.9347 — R2 Daily
0.9397 -- November 7th High/ Close to the 0.9400 Psychological Level.
0.9218 — Daily Pivot
0.9187 — S1 Daily
0.9138 — S2 Daily
With Recent Data from The UK Shows Sign of Recovery in the economy.
Yesterday’s Mortgage approval data shows sign of recovery in the housing market which Crippled the UK Economy late last year. News of Northern Rock Takeover by The Government although questionable politically, is being considered to be alright for the market, at the very least Northern Rock is safe in the near future.Although The British Government has stated that it will only be temporary until further bid for privatization surfaces.
Technically Speaking, GBP/USD has broken out of the Downtrend Channel last Friday,
Rejected previous resistance trendline yesterday and would probably enter a Range Market this week, A Reversal is likely but not necessarily.
Further move up late today is possible, as Daily chart is not yet in overbought territory.
1.9713 — R1 Daily
1.9759 — R2 Daily
1.9812 -- R3 Daily
1.9660 — Daily Pivot
1.9614 — S1 Daily
1.9561 — S2 Daily