Remaining Nimble in AUDUSD and selling the close
There are a few opportunities which we have discussed privately on AUD and why it is a good time to be getting long on AUD crosses (namely AUDCAD or AUDJPY). Here I am nervous over USD strength as we begin pricing in a Q3 hike there so with Gold moving down in an impulse move (see attached ideas for more colour on that topic) the short here seems reasonable.
Well if we dig deeper on the RBA side, I strongly disagree with the doves that any cuts are around the corner. Lowe does not seem like a man who is desperate to move. The pause globally in central banks has helped equities but markets will test the limits again very soon.
A test of the lows by default here seems only a matter of time, I expect a move like this in nature.
Best of luck to those who are positioning for the sell-side next week for this 5th and final wave down to the lows.
Well if we dig deeper on the RBA side, I strongly disagree with the doves that any cuts are around the corner. Lowe does not seem like a man who is desperate to move. The pause globally in central banks has helped equities but markets will test the limits again very soon.
A test of the lows by default here seems only a matter of time, I expect a move like this in nature.
Best of luck to those who are positioning for the sell-side next week for this 5th and final wave down to the lows.
