The storm of dire news from Europe is hurting risk-on currencies. Here's how to trade the cautious sentiment.
You can't really blame investors for being gun-shy, what with Greece close to default, Italy taking a rating cut, and European leaders at odds over how to deal with any of it.
The question is how to trade the new caution.
Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank, thinks risk-averse investors will be selling commodity currencies, and she recommends selling the Australian dollar against the U.S. dollar as a result.