As for the currency markets on Tuesday, there is not much to go on although the Yen crosses may see some early action following the BOJ Meeting, and right now it looks as though EurJpy and, possibly, AudJpy will stay underpinned in the short term. Note that US$Chf seems to be a little weak in the near term, while the Kiwi looks slightly positive, although I suspect the upside is rather limited from here, and still prefer to sell it against the US$ for the medium term trade.
WTI had a good day, and may be building for further gains although the price remains very choppy.
It is tricky to find a decent currency trade today but I still prefer to look for cheap levels to buy the US$, and US yields remain underpinned today with the 10’s (2.975%) once again looking to pop above 3%, which should lend support to the dollar in the days ahead.
With regards to the Aud$, there is some domestic/China data out today, which may provide some volatility. If we do see a rally, as with the Euro, I prefer to sell into near term strength given the rising differential between US/AUS yields, while also looking forwards to next week’s FOMC Meeting.
Sell EurUsd @ 1.1760. SL @ 1.1790, TP @ 1.1660
Sell AudUsd @ 0.7450. SL @ 0.7490, TP @ 0.7350