Tremoring Tuesday:
Here we were thinking that with China on holidays all week and a relatively light calendar in terms of event risk that could cause a major repricing in the market, that we’d be able to cruise through the week without any dramas. Ha!
But just how dire are things looking? Surely not as dire as our friends over at CNBC are reporting?
With traders looking for the ‘safety’ of gold (the answer to yesterday’s XAU/USD chart of the day question was a very solid no) and Bonds, those assets fared very well indeed. Gold lows seem a distant memory, while bond yields (inverse to price) hit their lowest in 12 months in the US T-Note and German Bund.
Chart of the Day:
A follow on to yesterday’s XAU/USD chart of the day with a high level look showing what we spoke about above.
XAU/USD Daily:
Click on chart to see a larger view.
With price almost not having a single down day since December, price is up around $150 off its lows.
Like yesterday, my trading style would normally be to look for levels to start fading around, but that is just not a smart thing to do in these sorts of market conditions. Trading is about being adaptable and for me, that means identifying momentum and not letting myself jump out in front of the moving train that is price.
On the Calendar Tuesday:
CNY Bank Holiday
AUD NAB Business Confidence
GBP Trade Balance
Expecting another fairly quiet news day with China on holiday all week for Lunar New Year celebrations and the rest of the data on the calendar today second tier.
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