Today’s Trades 04.10.2018 – USDJPY, USDCAD, AUDUSD

*Good morning/afternoon everyone!*

It was no surprise that Chinese President Xi took the high road by refraining from escalating trade tensions with the U.S. during his speech last night. Instead he stressed China’s willingness to cooperate by saying they could lower trade tariffs on autos and tighten enforcement on intellectual property rights. In return, USD/JPY bounced back above 107 and risk currencies traded higher across the board led by gains in AUD and NZD. The U.S. dollar is still underperforming after the FBI raided the offices of Trump’s lawyer, putting the trail one step closer to the President. EUR/USD is testing the 50-day SMA for the second day in a row and and looks set to break it. Sterling is benefitting from positive BoE comments the Canadian dollar is finally moving lower on the prospect of a NAFTA deal. U.S. PPI and Canadian housing starts/permits are the only economic reports on today’s calendar.

*The MAIN THEMES I see today are*

-JPY
+CAD
+AUD
+EUR
+NZD
+USDJPY

*Trading Biases*

+EUR, +CAD, +AUD, +NZD
-JPY, -USD (except vs. USDJPY)
neutral CHF, GBP

*Today’s Initial Trades*

Here’s the summary --

1. Buy USDJPY at 107.07, Stop at 106.79, Target 107.35
2. Sell USDCAD at 1.2677, Stop at 1.2705, Target 1.2649
3. Buy AUDUSD at .7740, Stop at .7712, Target .7768

Close ALL open day trades by 10:20AM NY / 15:20 GMT

Swing

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