AUD again the main ‘risk’ play in Asia
Those looking to play the ‘risk’ card during Asia are probably best doing so through the AUD/USD and AUD/JPY. European traders will be more likely do so through EUR/CHF, cable and EUR/JPY.
AUD/USD saw some heavy selling from macro funds at the end of last week. If global growth worries persist and stockmarkets remain heavy, then I would expect the AUD/USD to fall towards 80 cents in the next few weeks. If USD/JPY breaks below 87, then this will also put some very heavy pressure on AUD/JPY. EUR/AUD continues its march higher and is closing in on 1.50 again, 1.58 remains my target here.