The Australian dollar traded sharply lower today on the heels of the RBA rate decision. Governor Stevens stated that a lower dollar was “likely to be needed” – a turn of phrase that some analysts in the currency market understood as a signal that the central bank may become much more active in guiding the currency lower. The RBA is clearly concerned about the sharp decline in commodity prices, especially iron ore which represents one out five Australian export dollars to the country. Tonight’s more dovish language may have been a warning to the market that the central bank would be willing to consider another rate cut and as traders adjusts their own expectations, we could see further weakness in AUD. To position for this possibility, we are laying out a fresh AUD/USD sell order.
Remember we are still long EUR/CHF
1. Sell AUD/USD at 0.8370
Stop at 0.8430
Close 1/2 at 0.8340
Close rest at 0.8125
We still have the following pending orders on:
2. Buy NZD/JPY at 94.15
Stop at 93.55
Close 1/2 at 94.45
Close rest at 95.35
3. Sell AUD/JPY at 99.72
Stop at 100.32
Close 1/2 at 99.42
Close rest at 98.50
4. Sell EUR/USD at 1.2334
Stop at 1.2394
Close 1/2 at 1.2304
Close rest at 1.2175
5. Sell GBP/USD at 1.5565
Stop at 1.5625
Close 1/2 at 1.5535
Close rest at 1.5425
***Remember, if 2 orders trigger without one hitting T1 first, all other orders are canceled