BigNews.Biz - Mar 15,2012 - After two days of dollar dominance, forex markets are leading the way so far this morning. The NZD/USD, AUD/USD and AUD/JPY are all around 0.33% higher n early trading so far.
Gold is also recovering, trading up 0.29%. The euro is also showing signs of relative strength with the EUR/GBP up 0.25%. The pound is under pressure on speculation that it is 'odds on' to lose its coveted AAA rating.
Coming up today we have the ECB monthly bulletin at 09.00. The UKs MPC member Broadbent speaks at 11.30. US PPI and unemployment claims are due at 12.30 with improvements expected in both areas. US TIC long term purchases follow at 13.00 with Philly Fed Manufacturing index coming in at 14.00. Again both are expected to indicate an improvement in the economic climate for the US.
The AUD/JPY has been stuck below 88.00 of late and a breakout above this is on the cards. The main danger for this trade would be a major rebound for the oversold yen, so it would pay to have some downside exposure.
A good way to play this on BetOnMarkets.com might be an IN/OUT trade predicting that the AUD/JPY closes outside of 87.00 or 88.75 in 4 days time for a potential return of 122%.