The Panthenon Investment Group

We short AUDJPY at 101.90 and squared the position at 101.50 for a trading profit of 40bps or 0.39%.

We entered long AUDJPY later at 101.52 and squared the position at 101.80 for a trading profit of 28bps or 0.27%.

We were convinced that AUD overshot last week on Thursday and Friday, despite the bad economic data.

This morning we short the AUD JPY at 103.50 based on technicals and then when the GDP and industrial production for China came in dismal at 10am Singapore time, the AUDJPY collapsed, we squared off our position at 102.00, the low was 101.65.  We made a trading profit of 1.50bps or 1.47%.

We are vindicated from losing monies in the AUDUSD put option last week!

This morning at 8:30am Singapore time, the trade balance for AUD came in at (0.81)Bn and improvement from the previous month’s (1)Bn.

New Home Sales declined to -5.2 compared the a positive 4.2 the previous month.

Nonetheless, AUD strengthened alittle and the JPY weakened a little, giving us an opportunity to long the AUDJPY at 97.63 and we closed the position at 97.90 for a 27bps realized trading profit or an absolute gain of 0.27%.

We missed the opportunity to short the AUDJPY on the way down at about 10am Singapore time.

Market is possibly creating an opportunity to long the AUDJPY again, the current spot is at 97.65 and the technicals look interesting.