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