Lately there has been a shift in most of the long running trends. It is crazy days in Forex trading indeed.
It wasn’t that long ago that the Gold bull market was blazing away, and it seemed that both the Kiwi and the Aussie could never fall. They were the last economies to feel the global pinch in their economy and had a willing customer in their wealth of commodities and minerals.
Now Gold has cooled off, and the Aussie and Kiwi are in down trends. The RBA has been lowering interest rates, and the economy is slowing down. The Finance minister says it is nothing to be alarmed at though, because it is simply a transition from the mining phase to the production phase of the mineral industry.
I can see his point, as there is a natural reduction in jobs and a slowing of that sector when exploration leads to active mining, but how does that affect the economy as a whole? Sounds like a truth meant to be taken by the masses as an explanation of the whole, but it surely isn’t.
At any rate, the market is pretty volatile right now, and a lot of fund managers are adjusting their portfolios.
This morning when looking at my trading plans, I had no idea what the dollar would do. It’s been a while, before I had at least some idea what the U.S. Dollar would do. If you don’t already know, I always look at the USD before planning my trades because they have a global effect on currency markets. The latest economic data has been mixed. Technically the dollar bull run has just bumped up against resistance two days ago on a weekly time frame, and after a pull back, it is hart to tell if it will retest highs as it did in May, or continue down to maintain a sort of ranging pattern.
But this is what makes trading fun and interesting.
So I guess today we’ll have to stick with the Euro.