The dollar has taken a beating over the last week. Here's how to trade it now.
The greenback can't get a break. First came the truly dismal payroll report. Then, when European officials said Greece would in fact receive its aid payment this summer, "That removed a big uncertainty from the market and then the euro was able to rally more sustainably," says Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank.
So what should you do now? Don't expect anything great from the dollar. Rather, look for something to trade against it. And that something, Bourdeau told CNBC's Melissa Lee, is the Australian dollar.
The Reserve Bank of Australia is set to meet on June 6, and Bourdeau expects officials there to issue hawkish comments. She also expects a solid employment report later in the week. So Bourdeau recommends buying the Aussie dollar against the U.S. dollar right around current levels of $1.072 with a stop of $1.0612 and a target of $1.0950.
You can watch the whole discussion right here.
