Australia’s part-time jobs dropped significantly from 35.5K to just 6.3K in September. This decline is putting pressure on the Australian Dollar, increasing the likelihood that the Reserve Bank of Australia may cut interest rates. Gold is on the rise, now close to $4,250. This increase is driven by demand for safe assets and a weaker US Dollar. Current readings show that gold might be overbought, indicating strong interest in the metal as a secure investment during uncertain economic times.

Challenges in the Cryptocurrency Market

Aster, PancakeSwap, and Immutable are facing losses as the cryptocurrency market goes through a second wave of selling, coinciding with Bitcoin trying to reach $110,000 again. As a result, these tokens are struggling in the current environment. Lido DAO is bouncing back after releasing its Lido V3 testnet. On Wednesday, the token managed to hold support above $1.00. The testnet aims to improve Lido Core contracts, showing progress in the project’s development. The sharp decline in part-time jobs in Australia indicates a slowing economy. The numbers fell from a revised 35.5K to just 6.3K, which raises expectations for a potential rate cut from the Reserve Bank of Australia. We are looking to take advantage of this by considering buying AUD/USD put options or shorting Australian dollar futures. Gold’s rise towards $4,250 is fueled by growing distrust in government spending policies. The big stimulus packages from the early 2020s have led to today’s debt issues, with the US debt-to-GDP ratio now over 130%. This suggests we should continue investing in gold through long positions in gold futures or by buying call options.

A Cautious Approach to Market Conditions

However, we must acknowledge that the market is currently overbought, which could lead to a correction, similar to what we saw in the summer of 2024. A more cautious approach could involve using bull call spreads to limit risk while still allowing for potential gains. Selling out-of-the-money put options could also help generate income while waiting for a possible dip in the market. In the crypto space, we are seeing investors move towards safety, with Bitcoin testing $110,000 while many altcoins decline. This pattern has been observed before, with Bitcoin’s market dominance climbing above 55% as speculative funds pull out of smaller projects. One strategy could be to trade pairs, going long on Bitcoin futures while shorting a selection of weaker altcoins. The surge in Lido DAO is driven by short-term news and stands out against the overall market weakness. The excitement around the V3 testnet is notable, but such events often lose momentum quickly. We see this as an opportunity to sell call options at higher strike prices, betting that the rally will cool down once the initial excitement fades. Create your live VT Markets account and start trading now.

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