The downside risk in AUD against USD is anticipated if the Fed's rate decision seems to be is in line with the Yellen's hints after she sent strong indications that US economic conditions are likely to justify an interest rate hike at some point this year.
Agenda on week ahead and global economy:
20th July: Monetary policy minutes
21st July: Australian CPI Q2
21st July: RBA governor Steven's speech
29th July: Fed's Interest rate decision
Formulation of Strategical Framework:
For Australian exporters who have their receivable exposures in USD, we advocate buying ATM (At The Money) AUDUSD put options.
Keep long positions ATM 0.7404 -0.51 delta put option of August expiry.
Costing maximum funds at risk is US$ 538.06 per lot of 100,000 with a breakeven of around 0.7332.
Bear in mind that we are well above the levels that we've been over the Fed's rate decision which is scheduled on 29th July. We believe a higher USD gives them more of a case to cut rates. Entry: ATM (At-The-Money), 0.7404
Maximum loss to the extent of premium paid as we are long the put option.
Desired returns would be triggered by expected Fed's 25 bps rate cut.


JPMorgan Cuts Gold Price Forecast, Sees Bullion Reaching $4,500 by End of 2026
Trump has made more than $1 billion from crypto in a year. How?
Gold Pulls Back After Hitting $4,180 as Geopolitical Risk Sends Crude Higher
Bank of America Upgrades T-Mobile to Buy, Says LEO Satellite Fears Are Overdone
Goldman Sachs Flags 3 Key Risks Ahead of Europe’s Earnings Season
Smartphones are helping filmmakers tell the stories the movie industry overlooks
Buy the Dip: Gold Holds Strong at $3980, Targets $4150
AI can be a personal trainer in your pocket – but is it safe?
Citi Raises TSMC Price Target as AI Chip Demand Strengthens Growth Outlook
Gold Surges Past $4150 on Dovish Fed Signals and Weak Jobs Data; Bullish Outlook Prevails 



