AUD,NZD/Flows and Orders

AUD: Big hedge funds selling again in overnight trade

This in itself is no surprise because some of the big macro funds have been consistently selling AUD/USD over the last few months. What is somewhat surprising is that they are increasing risk ahead of a major risk event (my sources tell me that these are increased short positions and not reduced longs). Looks like they are getting more confident that a rate cut is coming!

The RBA announcement is at 04:30 GMT with trade data 3 hours earlier.

  1. Sean, is it the time to exit AUD/JPY long should we see reserve bank reduce rates by 25 to 50 bps? i would also short USD/JPY at 99.75 should price goes there.

  2. Hey Dok, definitely a risky play but its a risky business and the risk reward is excellent I think on AUD/JPY in partic. Keep positions smaller and stops wider but if this breaks lower then I think we could get 400 pips fairly quickly

  3. Sorry Dok, shud have been clearer, risk-reward wud suggest toi me that you shud exit aud/jpy longs and wait until after RBA; I see main risk to downside for cross in s/t

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