Intraday Market Thoughts

Adding 10 & 2 yr Spreads to this AUD Cross

by Ashraf Laidi
Feb 25, 2014 20:07

Yesterday we made the technical case for fresh longs in AUDNZD Premium trades. Today we introduce 10 and 2-year government yield spreads to another trade involving the Aussie. This particular Aussie cross is +7% year-to-date, while the Australian 2-year yield spread over this currency's 2-year spread is nearing 3-year highs. Tonight's Aussie Q4 construction figures (19:30 ET, Wed 0:30 GMT) are expected at 0.2% from previous 2.7%, while Thursday's release of Aussie Q4 Capex should also add more clarity to the currency. I referred to the pair as the perfect storm in my Feb 5 seminar and the last 2 weeks have confirmed so far.

The 3 charts with full details of the trading idea are in today's Premium Insights.

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