Australia’s participation rate remained steady at 67% in October. This means the percentage of the working-age population, either employed or unemployed, has not changed. The price of WTI crude oil is rising as European markets open. The Australian Dollar is also strong, thanks to a stabilizing US Dollar now that the recent government shutdown has ended. The USD/CAD rate is holding above the lower boundary of an upward channel near 1.4000. Gold prices jumped to a three-week high due to expectations of a more lenient Federal Reserve following the reopening of the US government.

The Japanese Yen

The NZD/USD could not continue its three-day winning streak. The Japanese Yen is under pressure, approaching a nine-month low due to ongoing uncertainty surrounding the Bank of Japan. The EUR/USD remains below 1.1600, influenced by the rebound of the US Dollar after the government shutdown came to an end. The GBP/USD is struggling near 1.3100, as the UK GDP data disappointed. Stellar’s price is looking positive, nearing key resistance at $0.297, thanks to a new project partnership. Hyperliquid stays above $38, even with recent losses from a $4.9 million market decline.

Trading Strategies in 2025

In 2025, we will share various insights into trading strategies, including Forex, CFD, and gold trading, with a focus on what different brokers offer. The steady Australian participation rate at 67% highlights a tight labor market, a trend we have observed for a while. This economic strength supports the Reserve Bank of Australia’s hawkish stance compared to global counterparts. We see it as beneficial to use options for building long positions in the Australian Dollar against currencies with a less aggressive central bank. We are noticing familiar patterns with the US Dollar, similar to the sentiment after the major government shutdown in 2019. Recent US inflation data has cooled, with the latest Consumer Price Index showing an annual rate of 3.1%. This fuels expectations that the Federal Reserve may cut rates soon. In this climate, it might be wise to consider strategies that benefit from a weaker dollar, like buying puts on the US Dollar Index (DXY). Gold prices are rising due to this dovish view on the Fed. Lower interest rate expectations reduce the cost of holding non-yielding gold. Historically, gold has done well before a Fed easing cycle, and it seems to be following that pattern again. We suggest buying call options on gold futures to take advantage of potential price increases as the year ends. At the same time, we continue to see weakness in the British Pound, driven by slow growth figures reminiscent of previous economic challenges. The UK’s latest quarterly GDP growth was just 0.2%, confirming the ongoing struggles facing the economy. This situation suggests that shorting GBP against the stronger Australian Dollar could be an effective trade in the coming weeks. Create your live VT Markets account and start trading now.

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