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happy to help.
it's my favourite pair and rarely does anyone want to
discuss it. when it moves, markets move.
japan has the worst economy of the major economies with
over 200% debt to gdp and mentioned as a possible
sovereign default. there seems to be some smoke but
no fire yet.
it is the second biggest economy and threatened for
the biggest at one stage of the journey.
what happens when an economy is shakey,
like the euro zone it devalues.
what happens when the yen devalues
normally everything loves it!
this time it could be a major move.
so where does the strength go?
usd with the greatest debt ever and talking up
creating inflation. i think that means more bond sales
due to that being the printing press. hard to create
demand when increasing supply.
fiat currencies are the likes of the aud nzd zar mxn eur etc
are the economies that are smaller and can bounce quickly
like aust with all the rate rises. japan wants to lower
from 0% and so would the usa. but! if the markets are weak
and going down the fiat are first to go down.
so a ramble of my thoughts and why i said, let the market
show the direction. in the forex world, retail traders
are left trading the noise due to stop placement.
i want to long the aud but the stop needs to be under
the swing low. expensive if you are wrong and hence
entry is everything
audusd daily