AUDUSD Short

On our last AUDUSD analysis on the 19.06 we indicated that we were short on the back of Dovish comments by the RBA. However, since then the currency pair has risen back to above 0.70 mainly on the back of a Dovish FOMC despite yesterday's expected RBA rate cut by 0.25% to 1%. Nevertheless, we see this as a good time to start building a short position despite the RBA not suggesting any rate cuts this year in yesterday's meeting. Therefore, we have increased our short position just below the 0.702 Fibonacci resistance level due to the continued struggles of the Australian economy coupled with the uncertainty over US and China trade relations.