Short Opportunity in the Aussie Dollar

The Aussie rallied as a result of the GDP report printing a touch better than expected at 0.8% vs. (E) 0.6% m/m and 2.8% vs. (E) 2.3% y/y. And, that rally is continuing this morning thanks to strong Australian export and retail sales data.  Aussie has now traded through the .90 level versus the dollar, which I believe is a great entry point to open, or add to, short Aussie positions. Quite simply, I don’t think the Reserve Bank of Australia will allow appreciation in Aussie materially past the $0.90 mark. You can either short outright Aussie dollar futures or shorts FXA, or buy the ProShares UltraShort AUD ETF (CROC); however it is “trade by appointment” at an average of between 10K and 20K shares traded a day.