I sold AUDUSD at 1.0381, aiming for 1.0181. Risk appetite has recovered over recently but the Aussie has been slow to capitalize amid swelling RBA rate cut expectations. In this environment, a likely return to risk aversion is expected to be all the more punishing and I will continue to hold short. A stop-loss will be triggered on a daily close above 1.0479. I opted to hold my EURUSD short earlier in the week but the trade has now stopped out on a break of trend line resistance.
Forex Strategy: Stay Short AUDUSD
Tue Dec 04 11:01:00 GMT 2012