During the Asian session we expect Australia's retail sales data and China's manufacturing PMI. With this in mind, the AUD will be trading with a higher volatility, and weighing even worse expectations, the Australian's downfall will likely remain the same. If we add the worst foundation around the new tariffs against China, any slight upward correction of AUD will be used by traders for new trend short positions.
AUD/USD - H1
JPY - As a large share of stock market negativism has accumulated during the US session on Friday, I expect the wave of stock sale to continue on Monday. This will add extra strength to the bulls at JPY. In view of the fundamental differences between JPY and AUD, in the first hours of the week, it is best to look for a trade at AUD/JPY - Short.
On the chart above, we can trace the downward trend, as an entry at the beginning of the trade would be appropriate given the current price position. Over the weekend, we did not see any significant foundations and why I do not expect big gaps in favor of the JPY. Growth of the yen can be expected with the opening of markets in China, where I expect stock sale to deepen.
Indices - Friday Wall Street's Wall Street sale will undoubtedly shift to Asia, as Chinese markets are directly dependent on the new tariffs Trump wants to impose. As the most dependent economy in China, Australia, I expect to start stock trading with a decline to be maintained by the end of the trading session. In China, the decline seems sure, and short positions on the Chinese indices and Long on JPY seem the best strategy during the Asian session.
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