With US markets on holidays overnight, the FX market hasn’t moved at all and is more or less where we opened yesterday morning. I’m short AUD/USD from yesterday, and also have smaller short AUD positions against the EUR and the JPY. I’m waiting for a return of full-blown risk aversion and I feel being short AUD is the best play. I’ve also got a small long USD/CHF position but I’m less convinced here that my timing is right. Elsewhere I think EUR/USD will drift lower over the course of the week, possibly in a 1.2350/1.2600 range, cable similarly drifting lower in a 1.4900/1.5250ish range and USD/JPY to re-test support at 87.00. (But I have been wrong before!)
The Toronto stock market fell by almost 1% overnight and Asia will take it’s initial lead from there.
Good luck today.
