Tuesday 6 August

The RBA held rates but ruled out rate cuts anytime soon, in a 'hawkish hold'. Yesterday's US ISM data was positive and helped sentiment, along with the FED'S Daly reminding us US rate cuts rate cuts are coming.

In the grand scheme of things I expect the negative sentiment to subside before long.

Which leaves me in a quandary. With the VIX currently holding comfortably above 33 I don't feel confident in a risk on trade.

But I'd like to see more confirmation the negative sentiment is here to stay before placing a risk off trade.

So, for now, I don't have confidence in the direction of the risk sentiment. And it's a case of, once again waiting for the US open to assess the environment.

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