Great win.
NIce OB rejection and multiple wick rejection. UD/USD is behaving like a cyclical risk asset, showing far stronger relationships with crude oil and US stock futures than US interest rates directly like USD/JPY.
The readthrough is that if traders continue to run with the soft landing narrative, we may see further upside for AUD/USD but limited downside for USD/JPY. But if Fed rate cut pricing were to increase significantly further, it would imply a growing risk of a hard economic landing, likely dragging AUD/USD and USD/JPY lower.
Incoming economic data will therefore be important ahead of the Fed.
The readthrough is that if traders continue to run with the soft landing narrative, we may see further upside for AUD/USD but limited downside for USD/JPY. But if Fed rate cut pricing were to increase significantly further, it would imply a growing risk of a hard economic landing, likely dragging AUD/USD and USD/JPY lower.
Incoming economic data will therefore be important ahead of the Fed.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.