Staying short last week in my AUD/USD position wasn't a prudent move as an unexpected rate hike by the RBA sent the pair soaring. At least I moved up my stop as I was cautious that the stronger Australian economy could start generating support for the pair. It still looks overbought at these levels and we may see a retrace but given the prevailing risk appetite more upside could remain.
Currently, I am in a short USD/CAD trade from this morning’s Canadian Jobs report trade webinar that I entered at 1.04714, I still like the position despite the disappointing trade data, as the breakdown of the employment report painted a bullish picture for the Canadian economy. A rise of 30.6K jobs with jump in the goods producing sectors and over 90K in fulltime hires underlines the optimism of companies. In retrospect, with the dollar finding some support from Fed Chairman Bernanke’s comments a long CADJPY trade may be more prudent. Regardless the break below channel support exposes 1.0299-9/25/08 low.
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