FXA (AUD) Signal - August 26, 2013


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

Andrew Keene spent 10 years as an independent equity options trader on the Chicago Board of Options Exchange, during which he spent the majority of his time as a market-maker for over 125 stocks. Andrew currently trades futures, currencies and commodities. When he's not trading, Andrew appears on top business television shows including CNBC's Squawk on the Street, Street Smart on Bloomberg TV and First Business, a show that is syndicated across the United States. Andrew graduated from the University of Illinois with a degree in Finance with a concentration in Accountancy.