Short AUD trade (From 5-Oct to 10-Oct)
Real-Time AmpGFX – bought AUD and NZD to close short positions (Tue 10/10/2017 8:36 AM MDT)
Bought AUD at 0.7787 to close short
Bought NZD at 0.7077 to close short
Positions are now square.
The USD broadly is under pressure on Tuesday and US 10 year yields have fallen (down 3.6bp today)
The market may be seeing the renewed Trump free-wheeling tweets as raising political risk in the USA. It is hard to assess how significant is the political risk in the US, but the market may be shifting back to what it perceives as the safer play of buying emerging markets, and this may broaden out a to weaker USD trend. European economic reports continue print strongly, and if Catalonia separatist ambitions take a pause, this may boost EUR and keep USD on the back foot.
Real-Time AmpGFX – Sold AUD/USD (Thu 10/5/2017 2:25 PM MDT)
Sold half unit AUD/USD at 0.7790
Positions
Short half unit NZD/USD at 0.7158; s/l 0.7258
Long half unit USD/JPY at 112.77; s/l 111.93
Short half unit AUD/USD at 0.7790; s/l 7887
Comment
The AUD/USD 2yr and 10-year yield advantage have turned lower, suggests to me a break lower in the AUD is likely.