Grassroots Currency Speculation

The Australian Dollar has gained strength against the Dollar in the last three days as the commodity bearing economy of Australia makes its way during the pandemic. The Dollar has been giving ground as Americans wait for stimulus payments to come through and President Trump talks about getting America open for business again.

Jerome Powell released a press release today about the influence of the Coronavirus and the Dollar fell soon after against the Australian currency. Actually it fell across the board. Before that the Dollar was gaining strength for most of the day. There is about another hour to go and you never know if it will regain some of that lost momentum. The Aud and Nzd have made something of a recovery from yesterday so this is not a good last few days to try to make a profit in less than 24 hours  unless you know what you are doing with your stop loss for safety. Update : The Dollar has strengthened a little against most currencies in the last 30 minutes as we go to print.

Astonishingly enough the AUD is doing quite well during the Asian(Tokyo) session. I had thought that it would continue to fall but it appears that some of the fears from the Coronavirus and the economy have been priced in from last week. The AUDUSD moved up to .6616 after a few hours of Asian trading. There was a report from the WHO that said the Coronavirus had peaked in January. So it could be a bit of profit taking from last week and the thought that the worst of the virus has come already. I am going to resist the temptation to jump into this trend until I see more traditional signals in the market. More strength from the four hour and hourly trends flowing back to the daily readings. New Zealand's currency is also doing quite well a few hours into the Asian session despite fears from Coronavirus. AUD Coronavirus

I pray for the traders that try to make sense of the New York Session in forex with the markets on a roller coaster ride because of the Coronavirus. AudUsd, EurUsd, and a host of other currencies reversed course after lunch time. This is getting complicated because obviously you have the stock market where the Dow was down 1000 points. So in forex there was already profit taking going on from the week before and now you had currencies establishing new trends for Monday. They have all gave up some of their gains that were made. As you well know I prefer to trade the Asian Session to prevent myself from running into the type of volatility that is being experienced in the markets today. It is going to be a long week for some people that got caught up in the Coronavirus hysteria. picture by Clifford A. Bryan