So far so good on my AUD/USD short trade! I was able to get in at .7100 right around last week’s FOMC statement then the pair gained bearish forex momentum after the RBA statement yesterday. Think I should make some adjustments?
Oh, if you’re wondering what I’m talking about, make sure you check out my initial AUD/USD trade idea right here.
I’ll be holding on to this trade for now, especially since risk aversion appears to be popping its head back in the forex market. Last time I checked, crude oil oversupply concerns are still in play and central banks have been acknowledging the possibility of a global economic slowdown. Yikes!
Earlier today, Australia printed a weaker than expected trade balance, with the deficit widening to 3.54 billion AUD due to falling export levels. For the month of December, shipments slumped by 5% while imports chalked up a 1% decline, also reflecting a drop in domestic demand.
Up ahead, I’ll be keeping close tabs on the U.S. ADP non-farm employment figures and ISM non-manufacturing PMI, as well as Friday’s NFP report. Even though Fed officials have reiterated that they’re paying closer attention to inflation data rather than jobs readings these days, I’m thinking that employment reports could still push the dollar around.
Here’s what I got:
Shorted AUD/USD at .7100, stop loss at .7310, profit target at .6850. Don’t forget to check out our risk disclosure if you’re with me on this one.
So far, I’m up around 0.25% on this position since I risked only 0.5% of my account on the trade. I’m going for a 1.5-to-1 return-on-risk, keeping my fingers crossed that price makes it all the way down to my PT.
Got any comdoll trade ideas you’d like to share? Post ’em right here!
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