Despite a poor retail sales report, the US Dollar is up 0.55% for the day. Meanwhile, a long-awaited swing short for AUDJPY has finally become valid to enter.
This morning the US economy report its retail sales data. Forecasts were bearish, but the actual result was far worse. The actual result was -1.1% versus the forecast of -0.2%. In general, such a result would often lead to a bearish reaction for the Dollar Index. Instead, the price reacted in an opposite manner and is currently testing last week’s high.
With a bullish Dollar in the short-term, majors such as AUDUSD are starting to head lower. A swing short for this pair was taken earlier last week, but the consolidation resulted in traders closing positions early. Price action traders are now looking to enter AUDJPY as the pair has finally breached support amid lower AUDUSD prices.
It has been a common theme this year where the Dollar ignores or reacts in the opposite direction of fundamental news. Not like traders need more reasons to not trade the news, but today’s reaction serves as another reminder as to why it can be so unpredictable.
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