With the RBNZ turning dovish, we are expecting the Reserve Bank of Australia to cut rates next month. OpenBook trader nganwa has been looking for opportunity to sell the AUDUSD. With the AUDUSD making higher highs since December, this trader believes that the pair is due for a correction and selling the AUDUSD. This trader who has 25 copiers so far on OpenBook opened a short AUDUSD position in the Asian session. The AUDUSD has broken from long standing relationship with risk flow in the past month. However with a high likelihood of rate cuts by the Reserve Bank of Australia in February, this trader could gain big on his positions. Looking at this trader’s profit targets, we see that that this trader expects AUDUSD to fall as low as 1.0050, which was the low established on December 28th. This trader has closed several AUDUSD positions with gains of 2.25% – 3.25% in the last few days.
Another Aussie bear who is going against the trend is top trader robepu. This trader who has 356 copiers commented earlier on his wall that he expects the AUDUSD to target 1.150. This trader is short on both NZDUSD and AUDUSD which tells us that he believes that Australian and New Zealand economies are not immune from the crisis in Europe. Looking at his NZDUSD positions, this trader expects the pair to target 0.80000. In the past several days, trader robepu has closed several short AUDUSD and NZDUSD positions with profits ranging from 7% – 18%.
Asian markets were mostly up except the Japanese Nikkei. The Nikkei was down 37 points, the Hang Seng up 294 points.
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