102.27-39 is where the intermediate support and stops line up. Again the big macro stops are around 102 AUD/USD.

With the rate cut, the forwards have moved in. The futures are trading an app. 46 point discount to cash.

We have a pretty good exposure to the commodity and resource sector. We’re looking at a short strategy via the puts on the futures to offset this exposure going into tomorrow.

I am not a fan of selling weakness into macro levels, however this is looking vulnerable to a bigger sell off and I’d rather have some downside exposure, than selling it a further 100 lower “if” it goes.

We’ll look at this later in the day, as we see this a more likely scenario tomorrow after the employment data is released.

I don’t mind throwing away a little premium on calculated risk just in case.

What we’re not going to do is sell the cash or futures with 200 points of potential upside risk!