AUD trade recommendation, to sell 0.7085 levels,

  • target 0.6960
  • Stop 0.7120

WPAC citing:

  • sell AUD into position squeezes
  • RBA remained on hold … less emphatic easing bias than anticipated and now leaves the market short AUD
  • RBA highlighted that AUD was at the lower end of its recent range and so that they do not see AUD as overvalued
  • Iron ore production from Brazil is being reduced, this should maintain AU exports at elevated levels
  • but the risk of US imposing trade tariffs on China is likely to severely limit AUD upside
  • Concern over the outcome in AU's approaching 18th May Federal Elections should also weigh