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Down Under and Looking Down

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China's move to widen the yuan's trading band may help the Australian dollar - but not right now.

How about those Chinese, widening the yuan's trading range? Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank, says it's probably a sign that they see better times ahead.

"It's likely they wouldn't have done it unless they foresaw an economic recovery coming over the second half of the year in China," she told CNBC's Melissa Lee.

All things being equal, better times in China mean better times for the Australian dollar, given the two countries' trading ties. But in the near term, there is the matter of Australian interest rate policy, Bourdeau says.

An interest rate cut in Australia is likely in May, Bourdeau says, and she expects that to weigh on the Aussie.

At the same time, she says, investors' worries about the euro zone are benefiting the yen since it is viewed as a safe haven.

So Bourdeau wants to sell the Aussie against the yen, entering the trade right around 83.50. She is looking for a move to 81.20, and she would put a stop at 84.60.

You can watch the discussion on this video.

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