The results of the next US FOMC meeting, which the market is paying attention to, will be announced on May 4 during Golden Week. Until then, US financial officials have entered a “blackout period” to refrain from speaking. It seems that the market is paying attention to the movement over the new coronavirus infection in China, although it is a little difficult to find a clue.
The lockdown measures in the big city of Shanghai did not end in a few days, but are about to take a month. Citizens’ dissatisfaction is increasing due to strong restrictions on going out and lack of food. Infection has spread to the capital Beijing and other areas, and large-scale PCE tests are being conducted. As China’s economic activity stagnates, the crude oil market collapses on the alert of a decline in demand, and the stock market shows unstable movements, which is also having a global impact.
However, risk aversion has stopped in today’s Tokyo market. In addition to the rebound in crude oil prices, Japanese and Asian stocks have also rebounded in response to the rebound in US stocks the day before. In the foreign exchange market, Australian dollars and Canadian dollars are bought in response to risk trends and resource prices. However, the dollar index has remained at 101 units, and the trend of a stronger dollar has been maintained. I would like to pay attention to the price movements of Eurodollar and Pounddollar in the London market after this.
Due to the slump in China, imports of iron ore are conscious of a decrease and plunge. From here, the profit of the producing country Australia decreases, so the situation is that it is selling AUD. The adjustment of AUD has become quite strong, the situation where AUDJPY is being sold from here.
Easy position only.
At 92.03, AUDJPY sell entry.
The stop is 92.66