Not a great deal on my radar screen as it’s been a fairly quiet week or two, probably just the sharp fall last week in the AUD is on my mind.
In an ideal world it may claw back to 75 or so and at the same time some discounts open up in some offshore LICs so I can be underweight the AUD again. HHV, TGG, GVF and a closed end fund in the US are ones that I will monitor.
Not much to write about from the shorter term derivatives trades. A profit was made in the AUD short that I took too early. I’d prefer to short again on any bounce but not sure we can get to those recent highs of above 78 for the following reasons. Since I shorted last time at 77.40 note that we have seen a much lower iron ore price, far lower than expected CPI print, an RBA cut, and a much more dovish sounding RBA. The speculative position reports I noticed had a bit of a wash out of some of the AUD longs but I feel more could occur.The U.S. equity indices shorts are about at the same level I entered but at least the long coffee trade started well. I moved the stop up to 1500 now that it looks to have broken up into a new range, the downside is fairly small now if this doesn’t work out. Currently the price is up 5%.