Christopher Vecchio's Analyst Pick
Now that we're out of the holiday weekend, it's clear that US markets have priced in some negativity following the dismal NFP print. Alongside, the US Dollar has taken quite the plunge - this strong correlation between the US Dollar and equity markets is a good sign going forward, but for now, given macroeconomic headwinds, panic will likely arise if the US Dollar is no longer viewed as a safe asset in the near-term.
Regardless, now that liquidity is expected to return to the markets tomorrow with Europe coming back from a long weekend, I'm treating the Tuesday Asian open as the start to my week - and given recent data, I will sell strength in risk. For now, I'm eying approximately (denoted as ~) 1.0370 in AUDUSD, ~84.60 in AUDJPY to sell (you can find my intraday thoughts on Twitter).
Again, I think it is possible that we see a bearish reaction by European markets tomorrow as they begin their week - they have been closed since Thursday and haven't reacted to NFPs yet. Alongside rising Euro-zone concerns, I think tomorrow could be a rough day for higher yielding currencies and risk-correlated assets.
Any other trade ideas and general macroeconomic musings can be found in the Real Time Newsfeed, or by following me on twitter @CVecchioFX
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