RBA: More public comments regarding the high AUD

Yesterday it was Jillian Broadbent who was quoted in the mainstream press as saying that the AUD was too high, and today it’s incoming board member Heather Ridout, who is also saying that more attention needs to be focussed on the high level of the AUD. Perhaps if tomorrow’s CPI data comes in below expectations, then the RBA board might consider ย cutting by 50bps? Not really the Glenn Steven’s way, as he tends towards being cautious, but its certainly interesting that the public rhetoric is being increased.

Medium-term I still like the sell-big-rally play in AUD/USD. I’ve got a very small core short position there and I am hoping to get better levels to add more over the next few weeks.

  1. Hi, Sean,

    Glenn sometimes put his show, like 1st May when everyone expect 25bps cut, he set a 50bps cut. If tomorrow’s CPI is lower, the chance to cut 50bps is higher.

  2. hi sean, how do you manage your aussie short? staying short on a stagnant aussie, even if its a pause, can really eat into your profits. and the aussie has been pretty resilient through the last few months, so wouldnt you consider the trade a bit risky?

  3. Hi Rahul, this is one of my big picture trades and I cannot really lose money on it now as my average entry is well above the market. I was lucky in that I initially entered at a really good level with a moderate position size and this has allowed me to be patient and build. My view is that we get a bearish break over the next few months towards 92/94 and when that happens, I’m hoping to get the timing right and have a large position. For moment my possy is quite small so hopefully the break doesn’t happen now ๐Ÿ™‚

  4. Rahul,

    Sean is very good at building positions, especially when the direction is right:), If you want to know detail, register his fxstreet webinar.


  5. That’s presuming Mike that an old dinoasur like me is able to handle all this new webinar technology ๐Ÿ™‚ Excellent chance that I’ll stuff something up.

  6. i hope this is not the same position that you had a few months back when you were at forex live :D. I remember you explaning your method of building a position by buying higher and selling lower till its breaks lower (and vice versa).But, im not sure if its an account limitiation, my broker doesnt allow me to choose which position i close.I have to close the one i have entered first. Your method cannot be entirely replicated,even though its sound.

  7. Best we find you a new broker Rahul ๐Ÿ™‚ Intraday trading requires constant almost 24/7 attention to the market and whilst I did that for 2 years after leaving the bank, it was simply too exhausting. I needed to find a trading style more suitable for the 45+ ๐Ÿ™‚

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