Not a good time to be an Aussie bear! Just when I thought risk aversion would keep AUD/USD’s gains at bay, the Australian economy printed a couple of stronger than expected reports. I should’ve cut losses when I had the chance.
I know, I know… Strong Australian retail sales AND trade balance figures should’ve been my cue to exit early! There were other signs signaling that the Aussie’s selloff was over, as risk appetite returned to the markets when the tension in Ukraine seemed to subside. I guess I was counting on RBA Governor Stevens to jawbone the Aussie in his testimony during the U.S. session.
As for my USD/CAD trade idea, well, I decided against taking that one since Canadian reports came in very strong. Did you see that jaw-dropping 8.5% gain in building permits and not to mention the better than expected Ivey PMI?! I’ll give myself a small pat on the back for deciding to wait for confirmation from fundamentals before jumping in a long trade.
Right now, I’m staring at a 0.5% dent on my account as I lost 150 pips on my AUD/USD short. Do you think it’s time to switch sides and join the pro-risk anti-dollar camp? After the NFP is coming up and there’s a good chance we’ll see another round of weak jobs data. What do you say?
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