Long AUD/USD (From 21-Jun to 25-Jun)
Real-Time AmpGFX – Sold AUD/USD & AUD/NZD to close long positions (Sun 6/24/2018 11:45 PM MT)
Sold half unit AUD/USD at 0.7416
Sold half unit AUD/NZD at 1.0749
Comment
Asian currencies are down significantly on trade/investment friction between the US and China, policy easing appears to be generating speculative selling of CNY, spreading to other Asian currencies/
So we are squaring longs in AUD set last week on possible easing in trade tensions.
No positions or orders
Real-Time AmpGFX – Sold AUD/USD, to close half long, Trump tweet (Fri 6/22/2018 8:50 AM MT)
Sold half unit AUD/USD at 0.74185;
s/l raised on remaining long half unit, see below.
Comment
Trump has tweeted after the EU announced tariffs on some US goods in retaliation for the steel and aluminium tariffs imposed on the EUR.
Trump said, “Based on the Tariffs and Trade Barriers long placed on the U.S. and it great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!”
We decided to take some profit on our long AUD/USD position to keep risk under control in what remains a highly fluid situation on US trade relations. We continue to hold some long position considering the degree to which EM and AUD have been beaten down in recent weeks and the prospect of the US and China cooling its trade dispute.
As mentioned in my AmpGFX report yesterday (https://ampgfxcapital.com/reports/upside-potential-for-aud-and-gbp/), there are a number of reasons to see AUD recover from recent lows (tax cuts, better bank performance, mining capex, possible China policy easing).
Positions
Long half unit AUD/NZD at 1.0740; s/l 1.0643; t/p 1.0933
Long half unit AUD/USD at 0.7388; s/l 0.7387; t/p 0.7573
Real-Time AmpGFX – Bought AUD/USD on trade talk news (Thu 6/21/2018 1:39 PM)
Bought one unit of AUD/USD at 0.7389
Comment
This is an opportunistic trade on reports that White House officials are trying to restart trade talks with China ahead of the 6 July implementation of tariffs.
This comes after reports earlier in the day that China was using back channels to negotiate on trade.
We will keep a close eye on this, looking for quick gains.
It is far from clear that any talks would achieve anything, but it could generate hope of a cooling in trade tensions.
Positions
Long half unit AUD/NZD at 1.0740; s/l 1.0643; t/p 1.0933
Long one unit AUD/USD at 0.7388; s/l 0.7333
Our Capital at Risk: 91bp (AUD/NZD) 150bp (AUD/USD)
By setting an initial stop loss of 0.7333, our (AmpGFX) percentage loss on our new AUD/USD position would be 0.75%. Based on our trade size this represents 150bp or 1.5% of our trading capital.
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