So to summarize whats happening:
AUD gained in line with our expectations, which is why as stated at the time, we closed our AUDUSD sell with only 3% profit in order not to be dragged into the red. This was due to two reasons. Firstly the RBA holding. Secondly, the Chinese PMIs being slightly firmer than expected. Since China is the biggest trade partner of Australia, this indirectly helped them. I suspect AUD strength to continue tomorrow due to solid GDP growth. Hopefully if this happens, it should start to climb towards 0.74 at which point it would present a good opportunity to sell once profit taking against the dollar ends.
JPY gained after comments from Japan’s pension fund. The $1.1 trillion fund made comments on hedging that promoted JPY big in the market place and gave strength to the currency. I do not expect this strength to last.
GBP and EUR have slightly more pressure on them now. The IMF has reduced their weighting as reserve currencies to accommodate the yuan. The short term outlook for these two is not looking good and if the ECB and FED behave as expected, bulls on these pairs will be very sad at the end of this week and more so at the end of this month.
USD is was down slightly today, the first overall decline in 5 days, due to profit taking before the main events of the week. Expect it to return to strength shortly.
Canadian GDP data is due out shortly, which if is as analysts expect should make the CAD stronger, however I am not entirely sure about this one. Should the USDCAD fall further, it may represent a good opportunity to buy.
At the moment we have two positions open. A USDJPY buy and an NZDUSD sell. These are slightly in the red at the moment, but I am confident they will turn. Despite being in the red today, the account is overall up this week and I am confident that this month we can meet our 20% target. Last month is officially over and I am happy to say with a 78% gain, we smashed our targets. We will try to continue to build on this success and end the year on very strong footing!