Risk sentiment remains in the market following last week's colder-than-expected U.S. economic data, suggesting the Fed has likely completed its current rate hike cycle.
➡️ Markets are enjoying a resurgence of risk sentiment as consensus firms around the idea that the Fed is done raising rates, with the CMA FedWatch tool suggesting a 93% chance of no rate hike at the Fed's next meeting at the end of this month of September. Sentiment is also bullish in China on real estate stimulus issues, driving the HIS increase above 2% today. Most stock markets are higher from today's Asian open.
➡️ Risk sentiment is producing a gain in the Australian dollar, while the US dollar was the weakest currency in the Forex market today, bringing the AUD/USD currency pair into focus today.
➡️ There are rallies in several commodities, with the most notable being WTI Crude Oil and Brent Crude Oil which reached long-term high prices last Friday, which will be of interest to trend traders on the long side.
➡️ The USD/JPY currency pair remains within a valid long-term uptrend. Trend traders and return traders will be interested in being Long this currency pair.
➡️ Today is a public holiday in both the United States and Canada. Labor Day is a major holiday in the United States for market volumes which can be expected to be very thin today.
➡️ Tomorrow there will be a release of the Reserve Bank of Australia's Cash Rate and Rate Statement – the Bank is expected to leave its rate unchanged at 4.10%.
Credit by DailyForex.com