Tuesday 10 December: slightly dovish RBA.

The main news of the day has been a 'slightly dovish twist' from the RBA.

The AUD fell on the news, I wasn't at the charts at the time, if I was, would I have traded it? Well, it was a fundamental cause with the 'price action' to go with it. And was arguably an 'in the moment' news trade. But because despite the slight change in narrative, the RBA still remains one of the most hawkish central banks. Combined with the positive china news, I think I wound have been sceptical of continued AUD weakness.

AUD USD 4hr support has currently stalled the AUD fall.

In other news, its been a fairly flat day, Mondays china optimisation as faded slightly as attention turns to Wednesday's US CPI data. The dollar is currently looking strong, perhaps in anticipation of a 'sticky' inflation number. And for me it's a straight question of whether to long the USD in the lead up to CPI (taking any trade off before the data is released) or to simply wait until afterwards. And I'm going to wait for the close of the current 4hr candles before making a final decision.

Feel free to email any questions: johnelfedforexblog@gmail.com