You have no items in your cart.
BK AUD/USD Big Trade 02.18.2016 – New Orders
Place Order to SELL AUD/USD at 0.7110
We have been short AUD through AUD/CAD but the trade is being held back by lower oil and CAD weakness. This morning’s weak CAD retail sales data gives us no reason to remain in AUD/CAD. We want to be short AUD and the cleanest trade is AUD/USD which is why we are taking profit on AUD/CAD now and laying out new orders in AUD/USD.
AUD was already on the back foot following softer employment numbers but overnight Reserve Bank of Australia’s board member Edwards sent the currency tumbling lower when he described the currency as “a bit too high” and he would be “more comfortable with a level around 65 U.S. cents.” While he’s not the Governor or Assistant Governor of the central bank, the fact that AUD/USD is trading 6 cents above a level that most Australian policymakers would like to see gives us stronger reasons to be bearish Aussie. We continue to look for a move back down to 70 cents and perhaps that could be driven by the speeches scheduled for RBA Assistant Governor Debelle and head of payments policy Richards next week.