Australian dollar on a selling stance! Targeting pullback sales ~ Australian dollar strategy for October 30 ~

◎Today's AUD strategy and outlook

・Bearish view on AUD

・Holding a Short position in AUD/USD

AUDis trading in a relatively low range. There are many bearish factors already priced in to some extent. We will add to the positions we currently hold. However, if taking new positions from here, it may be better to sell on rallies.

AUD/USD Timeframe chart

AUD/USD Daily chart

Reasons to be bearish on AUD

・Chinese stocks (Shanghai Composite) falling for consecutive days

・Widening long-term rate differentials between the US and Australia

・Hung parliament in the Australian Parliament

・Concerns about policy toward China ahead of midterm elections

Reasons to be bullish on AUD

・On daily and weekly charts, still trading near lows. Downside room concerns

・Bearish factors largely priced in to some extent

US 10-year yield chart

Australia 10-year yield chart