SaxoTV

Lucas: A tale of two dollars

373 views
December 17, 2014 aussie dollar, australia, australia cash rate, australia central bank, australia currency, australia economy, australia rates, australia us, australian banks, australian central bank, australian dollar, australian dollar forex, australian economy, australian rates decision, australian reserve bank, commodities, commodity, commodity strategy, dollar, dollar growth, dollar index, dollar outlook, dollar strength, dollar trading, dollar weakness, dollar yen, dollars, fed, fed chairman, fed meeting, federal policy meeting, federal reserve, federal reserve hawkish, federal reserve rate, federal reserve rate hikes, fx, fx audusd, fx chart, fx crosses, fx exchange, fx forex, fx investing, fx market, fx markets, fx options, fx pairs, fx saxo bank, fx spot, fx strategy, fx trade, fx trade idea, fx traders, fx trades, fx trading, fx trends, fx volatility, fx volatitily, iron ore, janet yellen, janet yellen hawkish, rba, rba aussie, saxo, saxo bank, saxo bank saxo tv, saxo bank trading floor, saxo bank tradingfloor.com, saxo tv, saxo tv saxo bank, saxo tv trades, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, saxobank, saxotv, steve lucas, trade, trade idea, trade ideas, trade view, trader, traders, traders tale, traders tale saxo tv, traders tale steve lucas, trading, trading commodities, trading currencies, trading floor, trading fx, trading idea, trading platform, trading risks, trading strategy, trading tips, tradingfloor, tradingfloor saxo bank, tradingfloor saxo tv, tradingfloor.com, tradingfloor.com insights, tradingfloor.com saxo tv, tradingfloor.com trade ideas, tradingfloorcom, us economic data, us economic growth, us economy, us economy gdp, us economy improving, us fed, us federal reserve, us federal reserve monetary policy, us interest rates

With strong divergence between the United States and Australia at the moment, Steve Lucas from 3c Analysis is looking to sell AUDUSD. The Federal Reserve is expected to maintain its optimistic outlook on the US economy by issuing specific language regarding the timing of interest rate hikes next year in its statement on monetary policy due out on Wednesday.  

The variance between the US and Australian economy has been compounded by lower commodity prices as well as slowing growth in China. Steve notes that the price of iron ore has fallen 50 percent in the past year. These factors have contributed to a weaker AUD.

With the market appearing to be oversold, Steve is planning on selling modestly at the open and again at USD 0.8175. He is targeting a move lower towards USD 0.8066 and USD 0.8000. A stop can be placed at USD 0.8210, which is slightly above the lows from Monday & Tuesday.  

Join the conversation below to be a part of the social trading experience.

Non-independent investment research disclaimer

Full disclaimer