Keeping this brief, the all-important metric talked about as revealed by Wednesday’s Fed meeting faltered. Retail Sales and Consumer Price Index fell short of investor’s expectations. Of the two, the latter actually dipped in two levels, the MoM and the annualized basis. This means that we short the USD and buy the Yen going forward. Secondly, Aussie and Kiwi are rallying because of positive Chinese import-export data. That means going long AUD or NZD and racking up positive swaps in the process. As a safe haven, a rally in Yen means we also go long Gold and short market indices as risk creeps in.
So, I will initiate longs AUD, Yen and Gold next week. In all these charts, for example the AUDCAD, Gold and USDJPY, you notice clear bounce off support or resistance in respective charts with stochastics turning up or low depending on your chart.
Therefore, my trade recommendation for next week will be as follows:
• SHORT USDJPY and EURCHF
• LONG GOLD and AUDCAD
Have a good weekend guys.