By: Andrew Keene
The Australian Dollar remained higher against the dollar as concerns over the timing of possible tapering by the Federal Reserve. AUD/USD hit 0.9030 during the Asian open, after earlier trading as low as 0.9012. The Australian dollar came under pressure last week after the Reserve Bank of Australia said further rate cuts are possible in the future. AUD/USD remains under pressure as concerns over disappointing US data as well as the Fed’s upcoming decision on tapering. Indecision and uncertainty were reflected in the stock markets closing and currency prices fluctuations. AUD/USD is likely to find support at 0.8932, Thursday’’s low and resistance at 0.9122, high of August 20th.
My trade: Buy the FXA Sept 90-89 Put Spread for $0.35
Risk: $35 Per 1 Lot
Reward: $65 per 1 Lot
Break-even: $89.65
Greeks of this Trade:
Delta: Short
Gamma: Long
Theta: Short
Vega: Long