AUD/USD: Risk-reward favours selling intraday rallies.

The earlier dip in AUD/USD after the record trade deficit didn’t last very long and the Aussie once again lived up to its ‘teflon’ moniker. Nevertheless, yesterday’s tops at 1.0300 are likely to be difficult to overcome and with hedge funds still reportedly looking to sell, surely selling rallies is the logical play? Logic, the Aussie and the FX market all in one sentence is probably stretching it a bit.

Risk-reward would suggest selling at 1.0265 with exit orders at 1.0305 oco 1.0165.