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Hardy on the Aussie: The RBA's "cheap shot"
Where next for the Aussie dollar? The Reserve Bank of Australia says it's "uncomfortably high" as it kept interest rates at a record low of 2.5%. Saxo Bank's Head of FX Strategy, John Hardy, says we heard nothing new from the central bank and the market's already beginning to price in rate hikes in the future. He does, however, believe in a weak Australian dollar in the longer term.
John says it's a difficult one to trade if you agree with what the market's saying, that you believe in a weaker Aussie dollar but you also think it's getting a little over extended. Traders could look to take short term options views on the currency, perhaps against a couple of European currencies or against the New Zealand dollar which is getting "ridiculously extended", according to John.
You've also got to be aware of significant data releases this week in the US. There's hope, says John, for dollar bears, particularly if we get a strong jobs report on Friday.
01:57 minutes
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