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Commentary
On our analysis on the 07. 05 we advised that we increased our AUDUSD short position at 0.7482 and that we would be taking some profit below 0.7.
Yesterday we effectively took profit at around 0.698 and we are now monitoring the currency pair which is currently at around 0.7 to try and find another short entry level.
This is because our long term view on the AUDUSD is short mainly as we cannot see the RBA raising rates and expect a 50 bps rate cut in particular as they have cut the June 2019 gross domestic product (GDP) forecast by 0.75 percentage points to 1.75%.
On the downside we would be looking for the currency pair to break the Fibonnaci support level around 0.69628 but it does appear that the market has taken a bit of a breather whilst it awaits the outcome of the US-China trade deal negotiations.