AUD shows its hand

The initial reaction the the RBA rate hike was one of slight disappointment, it was deemed 'not hawkish enough'. But that sentiment didn't last long and during Wednesday's Asian session the AUD has had a bout of strength as multiple calls for further rate hikes hit the wires. The NZD has also gone along for the ride.

Despite early week negative Hormuz strait headlines, overall market sentiment remaines upbeat and I'm still of the view 'risk on trades' are viable after pullbacks.

My preference at the moment would be AUD or NZD long vs whichever I felt most shortable in the moment out of USD, JPY or CHF. The risk to any trade being 'very negative war news' or JPY intervention.

Currently, I feel the AUD has gone too far without creating support. Over the next 24 / 36 hours I'll be keeping an eye out for any pullbacks creating support, whilst keeping abreast of headlines.

Please feel free to email any thoughts or questions: johnelfedforexblog@gmail.com