Fundamentals and correlation look quite promising, the Aussie will suffer more than most if the trade war continues to gather steam and the Fed rate-hiking cycle will reduce the attractiveness of any carry trade sucking money into the US. The DOW has been down 8 days in a row which hints at a mild risk-off market and the EU start its retaliation to the US trade tariffs today, I guess there is a good chance Mr Trump will respond to this move with a similar big tariff threat in a similar way as he did with China. An EU-US trade war is far more concerning than a China-US one.
I had a similar set up on NZDUSD but that missed its sell limit set at 0.6915 but that is often the case with these highly correlated pairs. A similar trade also exists in the GBPUSD but that trade will probably not arrive until next week.
As always I will be risking 2% of equity and hoping for better than a 2:1 return.
It has been a rather poor week, AUDUSD hit target for 4% and NZDJPY hit stop loss for -2% with USDMXN also underwater and looking like it also might get stopped out for 2%