The Australian Dollar has tumbled amid weak data out of China. I am seeking long positions in this currency as I think we will see a rebound.
Why?
I would have been looking for a rebound maybe earlier in the month, but now that 0.867 is gone, it seems the bulls were beaten?
I think it depends on your time horizon. Long-term I think the Aussie will rebound. The RBA is trying to talk down the Aussie, but I doubt they will have much more success. When commodity prices rise the Aussie will feel a positive impact. Short-term I think we will see more volatility, but there are def some great trading opportunities on both sides. So it all comes down to strategy and time frame.