While I was sitting, listening attentively at Rob Booker’s forex trading seminar. Many thoughts and memories gushed back to me. Remember, I haven’t traded but 7-8 months and I haven’t touched my trading account, nor have read anything related to trading forex. I was sitting there like a n00b. In the first hour I was wondering what the hell I was doing there. The second hour I was trying to remember how it felt like when I was forex trading.
Oh Boy! The last two days have been real interesting. Actually I’m blown away. Rob Booker’s new forex trading strategy looks feasible. I could say it “rocks” but I haven’t traded it yet. But I am blown away by some of the concepts that he used. (Of course these concepts may or may not be new to you depending on your trading experiences). I was introduced to the world of using pivots to trade. When I used to trade before, the only indicators I used was EMAs and MACDs.
About 3 weeks ago I got an email from Rob Booker saying that he was coming to give a seminar in Sydney. I immediately signed up no questions asked. I didn’t need to read the sales pitch. I didn’t even read the email. Actually I missed the first email that came that said that Rob was coming because the message was deep in the email. (I don’t read many emails which don’t have a subject pertaining to something I’m interested in). I only read the email which had the subject of “Sydney Seminar Update” from “Rob Booker”. Anyway, I sent my US$1,300 and the deal was done.
Hello Forex World I’m back! After more than two years of absence from this blog, I come back reinvigorated and re-energised about forex trading. I aim to keep this blog updated frequently from now on, reflecting upon my trading journey from this point onwards.
The Aussie touched one week highs on today’s Asian forex trade. The rally was a little stifled as a result of caution in the markets ahead of US employment data coming up overnight. This morning the Aussie was around 77.90 cents compared to 77.73 cents yesterday. Sue Trinh, currency strategist at RBC Capital, have noted that carry trades have gained renewed interest with investors encouraged by signs of consolidation in world share markets. Is the dollar set for recovery above 78 cents when just a week ago we were thinking about 80 cents? Hmm – something to ponder in the weekend.
The Australian dollar closed the Asian forex trading day stronger today brought about by gains in local and regional stockmarkets as well as economic data released today. The Australian economy grew by 1.0 percent in the fourth quarter, lifting on year growth to 2.8 percent from 2.2 percent in the third quarter. Strong spending, construction and mining activity gave the economy a boost. Growth was expected by the market to be 0.6 percent.
The Aussie dollar is steady for now. Australia’s monthly trade deficit in January has narrowed which encouraged the local currency somewhat. The deficit narrowed to A$876 million in January from a gap of A$1.379 billion in December. The Australian Bureau of Statistics (ABS) said that exports rose by 2 percent and imports fell by 1 percent in the month. The Reserve Bank of Australia (RBA) met earlier this morning but the market expects them to hold rates steady at 6.25 percent. The outcome of their meeting will be found out tomorrow.
Today was a nasty day for the Australian dollar. Those carry trades have forced investors to continue to sell down and unwind their carry trade exposures in their forex holdings due to the continued bearish market sentiment. It was interesting to note that government bonds continued to rally as nervousness across the region encouraged safe-haven buying. This morning the Australian dollar bought around 77.74 cents down from the 78.53 cents we saw last Friday. So, it was a correction of the markets?
While the Australian dollar has drifted lower in forex trade today, selling pressures across worldwide markets have eased. Government bond prices have closed higher after the economic data out of US of a downgrade in US fourth quarter GDP (Gross Domestic Product). In local data there was an upbeat fourth quarter capital investment data where business investment lifted just 1.0 percent (seasonally-adjusted) in the fourth quarter from the third, the data included news of a sharp upward revision of expected mining sector investment through 2007-08.
Looks like the Australian dollar is stuck in range trading mode for the moment. The support for the Aussie dollar is largely believed to be from the possible further rate rises. The RBA Governor Glenn Stevens warned last week that it was “too soon to declare victory” over inflation, adding that cutting of interest rates hasn’t been recently considered. Remember that the Australian official interest rates were raised three times in 2006.