A promising idea for the next two weeks would be to sell the Australian dollar against the US competitor. The pair is currently AUDUSD traded slightly above 0.69, at the level of 0.6920. It is worth noting that the Australian currency is due to the close trade ties with China risks being one of the main foreign currency assets - the beneficiaries of the economic difficulties in the heavenly places. Recall that China's financial system continues to crumble. A series of corporate defaults, hit the Chinese market in January-April, when the volume of defaults jumped more than threefold, it has reached the banking sector.
For the first time in 20 years in China collapsed bank. On the eve of the People's Bank of China announced the beginning of rehabilitation Baoshang Bank, whose total assets amounted to $ 83 billion. In anticipation of a significant slowdown in the Chinese economy, the Reserve Bank of Australia has set a course for national mitigation of monetary policy by lowering its key interest rate. The JP Morgan expect the Reserve Bank of Australia cut its key rate by 100 basis points, to 0.50% from the current level of 1.50% in the framework of a new cycle of monetary easing policy by mid-2020. Moreover, the first decline expected at the next meeting of the RBA in the coming Tuesday, ie June 4. Market participants believe that only the loose monetary policy will help the RBA to achieve its macroeconomic objectives. Otherwise,
SellLimit the TP 0.6930 AUDUSD 0.66 SL 0.6980
Brent crude again in the red zone. By 9:00 Moscow time quotes Brent environment one step away from testing to support $ 68 per barrel. Market sentiment remains depressed, which encourages traders to stay away from risky assets. In addition to enhancing the trade conflict between the United States and China represents a significant threat to global economic growth, and thus the demand for raw materials, oil pressure continues to increase the supply of raw materials threat. In particular, many analysts still fear that the oil stability in the US, combined with increased OPEC production and its allies will lead to a significant increase in supply in the world oil market. Recall that under the current arrangements, the coalition + OPEC will limit the total production to the end of June.Chi oil to compensate for the missing proposals against the background of the US sanctions against Iran and Venezuela. Market participants also are in anticipation of the upcoming report on oil reserves in the states, which will be published in the upcoming Wednesday. Meanwhile, according to the Commission Commodity Futures Trading (CFTC), hedge funds and other speculative investors reduced their net long positions in crude oil for the fourth week in a row. It is possible that traders are on the threshold of a new downtrend.
Brent SellStop 67,60 TP 65,20 SL 6 8.10
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author trader analyst Artem Deev company AMarkets.