Selling rallies is definitely the preferred option but I’d be wary of selling breaks given the ongoing negative sentiment surrounding the USD. Risk-aversion is the name of the game and that means selling AUD on the crosses but I’d wait for relief rallies before committing to AUD/USD shorts.
I’d look to sell short-term rallies towards 1.0920 and the downside has potential to see 1.0500, if not 1.0380 on increased risk aversion, which is a stronger factor than USD bearishness in my view.
Retail sales and trade data is due in 40 minutes and given current volatility, they could be good for a 100 pip move either way.
