ASX and the Australian Dollar

Risk aversion also could be seen in currency markets over the weekend with Japan’s yen appreciating.

The Australian dollar has drifted lower, retreating from the US77¢ level it unexpectedly broke through last week. Still, there was “real demand on the back of the reflation trade” for the Aussie and perhaps the currency was simply “a little overextended”, said Stephen Innes, senior trader at OANDA.

“FX investors are doing little more than moving from one position event to the next, while keeping positions light in between to avoid getting sideswiped by all the political noise,” Mr Innes said.

AFR WEEKEND

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes