Business-Insider

The commodity currencies have been looking good lately. As a carry trader, this has been good for me but is there trouble ahead? Perhaps.

The RBA came out yesterday with some really positive things to say about the Australian economy despite the international economic issues. That all sounds like there is the potential for another rate increase in the near term, which would widen the yield differential between the AUD/USD even more. However, from a technical perspective, some risk control would be smart. Here is a link to a great Australian source for a little more background on the release: http://business.theage.com.au/more-r...0211-1rkw.html


AUD/USD

I have been watching this resistance area, which bisects the gap in November carefully. The market was turned back from this level once already. Although this is not guarantee of a decline it is certainly justification for some risk control so we don't wind up as the feline in a dead-cat bounce. Tighter stops or a hedge probably make sense over the next few days.
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