Look to sell AUD crosses in short-term

The underlying economic story for the AUD remains questionable and this morning’s jobs data reiterates that. The AUD has had a really nice rally from 86.50 to 93.50 against the Yen but it looks like we might now settle back into some consolidation rather than break immediately higher. AUD/USD resistance at .9350 has been confirmed and the heavy corporate buying of EUR/AUD below 1.4300 has also taken its toll.

I now prefer to sell the AUD on the crosses in the short-term and GBP/AUD looks like the ideal vehicle.

  1. Hi sean am also looking at gbpaud. Looking at the previous lower high on the 4hr chart at 1.706.. but seems on the daily chart.. the 1.72 seems like a better r/r for a short entry.

  2. Love this trade Tom, stay small and nimble and then less chance of getting stopped on silly dips (and there are always plenty of them). Jobs data over last 24 hrs shows fundamentals heading in opposite directions and the cross is at historically low levels.

  3. Finally ! There is justice in these markets :). All eyes on profit targets. Taken into account the incoming Fed meeting , do you think Aussie might re-visit sub .91 levels Sean ?

  4. Hi sean, this is about as weak i see the audjpy getting. bottom of a range till next week?..hard to see pushing fresh highs though.but i picked up some more longs at 92.
    I do think USD will strengthen for the rest of the week. 81.70/75 is critical on the DXY. and that should weigh on the aus/usd . This was just one data point and i feel the upbeat chinese data might weigh a bit more. Do you think eur/usd has settled into a choppy range till the 17th? thank you.

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