As the Aussie MACD turns bearish, one must consider maintaining a short bias from here. The diverging monetary policy direction (with the Fed) put the RBA in a bit of a bind, hike rates and you destabilise the already shaky property bubble, don't hike and the currency should continue to sell off as the relative value, implied by the interest rate differential...
On the margin RBA remained in line with previous meetings, adding little but still keeping it on the dovish side imo. Once again, as in previous minutes (and from several other central banks) RBA continued to communicate the necessity of "watching key data" to drive future policy decisions. Interestingly though, they also mentioned the negative impact of a strong...
June FOMC Minutes Highlights:
- FOMC Minutes: Fed Officials Divided on Rate Path Amid Uncertain Economic Outlook
-FOMC Minutes: Members Said Prudent to Wait for More Labor Market Data, Brexit Vote Before Raising Rates
-FOMC Minutes: Prior to Brexit Vote, Staff Saw Uncertainty Holding Down Investment in U.K.
-FOMC Minutes: Members Judged It Appropriate to...
Short AUDUSD is in my top 3 FX Trades for several reasons:
1. AUD is considered a riskier G10 currency cross, so AUD trades weaker in risk-off markets, or when equities/ SPX trade lower (you can see the high correlation with SPX at the bottom of the graph).
- With Brexit concurring last week, global risk has increased, this is especially the case for AUD due to...
