Special Update: May 13, 2026

THOUGHTS ON THE MARKET

by Andy Krieger

In my recent newsletter of May 11, I wrote about the Australian dollar and how I am quite bullish on the various Aussie crosses.  I specifically discussed the AUD/CAD cross as I expect the Australian dollar to significantly outperform the Canadian dollar over the coming weeks and months. I have a variety of fundamental and technical reasons to support this view. 

I did not, however, go into detail about another Aussie trade that I particularly like, which is the

GBP/AUD cross trade.  Specifically, I have been building a short position in this currency pair for some time as I feel that GBP/AUD could potentially have a massive move lower.  The British pound is under pressure for a host of reasons – political and economic – and the Australia dollar is set to strengthen over time.  The combination is very compelling.  My only hesitation with this position has been that it is technically oversold, but I have been building the position despite this caution. 

My strategy has been to leave some firepower available to potentially increase my exposure in case we get a good-sized technical bounce, but otherwise, this is a trade that I think you should consider.  Please be careful, however, as it is quite oversold in the short term.  My long term targets are very far below current levels, so if you decide to play for this move, you need to think about this as a longer-term position. 

I will likely address this trade idea in more depth in my next newsletter.  Until then, I wish you all the very best of luck with your trading.

Andy Krieger