AUD,NZD/Trade Ideas

AUD: Rate-cut sheep are lining up again

After recent Chinese data and today’s CPI numbers, virtually all of the major bank analysts are lined up one after another calling a rate cut in either June or July. Wish one of them had something original or even risky to say occasionally. Probably asking for a bit much.

As you know I’m overall bearish on the AUD but if USD/JPY breaks above 100.00 then AUD/USD will be driven higher by AUD/JPY buying. Sovereign names have also been reportedly buying alongside the corporate interest around 1.0225 so a quick long trade for a test of 1.0360 might be worth considering? Just a thought.

  1. sell the rallies would be nice but not too sure about the levels. maybe 1.036 if there are signs. It does show a strong resistant there

    1. > Hello Danny,

      Maybe, we could try this trade : buy at 1.0360 with tight stop above 1.0400 ??? Sean, what do you think with that ??

  2. Hi Sean,
    looking at the development in AUD/JPY and based on your analysis that the double top didnt really materialised, if it breaks 102.85 which is the fibo level, we can expect it to go 105. This will also encourage aud/usd to move clear of 1.036. Would this form part of your reason of not willing to sell the rally?

  3. That’s my core reason Danny for sure. Now that AUD/USD is back above 10300, I’m sure some bears will be getting nervous so even more reason not to sell AUD rallies on crosses.

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