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Hardy: Why I sold the Aussie this Monday
CNBC.com ran a story this Monday speculating the Aussie dollar rally may have 'just started'. Saxo Bank's Head of FX Strategy, John Hardy, thinks a sustained gain is unlikely and he sold the Aussie earlier.
John says part of the reason for his move was the reaction to the nonfarm payroll data on Friday. Despite a disappointing headline figure, he maintains some of the data was actually quite strong. He says commodity currencies attempted a rally but then fell back and the Aussie continues to be in something of a bear market.
The only think you could base an Aussie rally on is near-term positioning that could boost the currency. He says the market might be second guessing itself on the strength of the forward guidance from Australia's central bank. Australian unemployment data's released on Thursday.
John also points out that traders can't ignore what might come out of Janet Yellen's testimony to Congress and the Senate this week. It's the first time she's faced politicians since she was given the Fed's top job.
02:10 minutes
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