Some further forex thoughts for this week, particularly for the Aussie Dollar. With China still closed for the New Year holiday and not due to reopen until Wednesday, expect trading volumes to be will light in the Asian sessions. For the Aussie, however, overnight sees the release of some important tier one economic data, namely retail sales and number of jobs advertised and with the aud usd forming significant candles on both the daily and weekly charts, namely the weekly chart ending as a shooting star candle, whilst the week delivered a positive up candle, the pair closed last week’s forex trading session just below the all time high of 1.0254. With the US dollar regaining some traction on Friday this evening’s news from Australia may give us some clues as to what this week’s market mood is likely to be. If the data comes in much better than expected then this should ripple through the equity markets and other “risker” assets, such as commodities.
The news for Australia continues on Tuesday with a Business Confidence Survey and ends on Thursday with some important employment data and a speech from RBA Gov Stevens. All this data, taken together with the technical picture on the chart should provide plenty of trading opportunities as well as some clues as to whether the recent “risk on” market mood is likely to continue or perhaps start to dissipate with the pair beginning to pullback from the recent highs.