The USD continues to crawl to the topside; USDCAD has an epic trendline. Watch Oil for direction.

Hi there, traders. This is Brad Goodwill with today's Trading Action. All right, as we come into the markets, the close of the New York session. Now, there's a few Fed cronies here sort of coming out and sort of opposing the whole Fed rate fight situation. Now, this is not unusual, right? They love to throw the main guy under the bus, come out and give themselves some credit, especially with Trump. It is a little bit, is it backstabbing? Probably. All right, now let's just have a look here. Now, Trump, just in the news, obviously making a bit more cash for himself. Back data center expansion, of course. A lot of concerns going around about AI and how it's gonna destroy the human race, but we won't worry about that just at the moment. Now, markets, okay. Like the bond yields are still going up. Now, that is one thing. Equity markets should not be going up at the same time, but it's all AI, AI driven. So the pricing of the equity indices, in my view, is artificial, right? They probably should be a lot lower. But just coming back to what Williams is actually talking about here, the Fed, no urgency next Fed rate hike, right? That is possibly true because the bond yields going up actually does the job for them, right? But just with this relationship, okay, that they're going up and these are going up, that's like a mismatch, right? So with that in play, we do have basically poor trading conditions. Now, that doesn't mean there's not trading opportunities, but just be aware, like the natural flow of the market is disrupted, okay? Now, we had the Aussie drifted lower. It doesn't look good for the Aussie, especially after raising rates. This is just that dollar move kicking in. To me, we're getting closer. If we had the equity markets and equity indices moving with the opposite way to the bonds, then we'd have pretty good market conditions. Everything looks great, okay, except just the natural flow of the markets is distorted. Now, one thing, just keep an eye on dollar CAD, right? I still think this is probably our go-to trade here, a move down through that trend line. If you've got trend line trade at 2.1, then it's a great one to just put on because it will only execute if it's in the right spot at the right time, at the right levels. Everyone else, hold on, that is looking particularly tasty. Now, where's the action today? So, if you come through the calendar, I was just having a look through, right? There's a whole bunch of Fed punters. Usually, it's one event, but some are in, they're all over the place. I was gonna say, they're in different places doing the job of trying to get the message out there. Okay, we're going through some tricky times, maybe higher rates. That's what they're doing, right? But they are getting the message out there to manage the general economy. Now, after the Aussie numbers yesterday, I think this is a separate event, the monthly CPI numbers. So, keep an eye on that. Year-on-year numbers, obviously the key. And that's followed up at the same time with the Chinese manufacturing numbers. That could have an impact on what happens with the Aussie after those numbers. Now, these Eurozone numbers, really not really in the game. I think it's too early for the GDP numbers in the UK to really have an impact as well. So, we've got a pretty modest couple of days coming up, okay? The PC price index, definitely have a look, and then you'll tie that to Friday's non-farm payrolls, okay? So, if I just click on the high-impacted numbers, you'll get a better idea. This is where we're at, obviously. PC price index, I don't know if the numbers are gonna have an impact with the bond moves and all these sorts of things. So, let's just see how that plays out. You've got the non-farms on Friday. That's gonna be a bit of a skittish event at best. So, that's where we are. Unfortunately, we don't have, well, we do have, and you look at your signals, right? We do have a lot of the majors lining up. As I said, that doesn't mean we don't have good trading opportunities, but just beware that the natural flow of the market is disrupted with these higher bond yields and equity indices artificially held up with all this AI investment, right? When that changes, it will go back to normal. So, you know what? You can pick these things off, okay, if the timing is right, that's for sure, but, and then just keep an eye on the equity indices. I can't see them changing at this point unless we get something sort of dramatic happening, right? They either continue, if they continue higher and equity indices keep going up, right, we're sort of getting towards some sort of black swan event, okay? It's not easy. We do have good trend lines. Make sure you redraw your trend lines because we've got some new sort of levels, especially on the Aussie, and we do have CPI numbers out today. So, tune up your charts and, yeah, get rid of all the crap and start to sort of look around, see where the opportunities are. The US dollar is going up, right? That's the whole deal. Does that continue? You wanna keep an eye on the bonds and equity indices because that's where the answers are. Today's US numbers maybe gives us an idea. Dollar cat is your best trade. All right, guys, have a good one. All the best. I'll be away for actually, sorry, before I forget, I'll be away for the rest of the week. I got a bit of a wedding on. So, hang in there. I'll be online and keeping an eye on the markets myself. Hope I can get Dolly in there. And let's just see how it plays out, right? It's just one of those weeks where the dollar is slowly walking to the top side. So, take advantage. So, with dollar cat, sorry, just on that, dollar cat could be a really good buy at these levels, right? Keep an eye on oil. If oil continues to fall, dollar cat will keep going up. And that's exactly what is happening at the moment. All right, guys, that's it for sure this time. Have a good one. Bye for now.