This setup looks attractive nevertheless we must consider recent events such as the rate cut not too long ago, the fall in employment rate, the low inflation and other economic risk. What might give th AUD the power to drive upward in the sort term is the USD perceived weakness and this lovely technical set up. Keep and eye out for the US Retail Sales it could make this trade-setup null.
Event Risk Thursday, May 12, 2016 07:30 USD Export Price Index (MoM) (Apr) 0.1% 0.0% 07:30 USD Import Price Index (MoM) (Apr) 0.5% 0.2% 07:30 USD Initial Jobless Claims 270K 274K 10:00 USD FOMC Member Mester Speaks 10:45 USD FOMC Member Rosengren Speaks 12:30 USD FOMC Member George Speaks