Daily Alert – Tuesday 16th August 2022: China data spooks markets

Mark NugentAug 2022, Daily Alert

Daily Alert – Tuesday 16th August 2022: China data spooks markets

Good morning.

Yesterday saw China’s economic slowdown deepening due to a slump in the property market and ongoing Covid lockdowns. An unexpected 10 basis-point cut in interest rates is unlikely to turn things around while those two negative factors remain, according to Bloomberg.

I looked at shorting AUDJPY, as mentioned in yesterday’s video, but decided not to as there were three hours of strong buying of the pair before the close of the daily candle.

Currently, I notice that WTI has been pushed down to support by the China concerns and is starting to edge up. I still view the fundamentals on WTI to be bullish and will be looking to go long if it continues to rise. On the currency front, GBPUSD short (weak GBP/strong USD) looks interesting.

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