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How to Trade a Disappointment Down Under

Economic reports coming from China and Australia are creating a trading opportunity, this strategist says.

The troubles in Spain and Italy are pushing the euro into a new trading range, says Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank.

She thinks the euro will remain between 1.2400 and 1.2250 for the week, "I think we're largely going to stay in that range at least this week because we're not going to get a lot of news," she says, and she would sell the common currency if it hits the top of that range.

In the meantime, Bourdeau is focused on the wave of China economic data coming out this week, notably theGDP report due on Thursday. She expects GDP to come in significantly lower, around 7.3 percent. Bourdeau is also awaiting an employment report from Australia, which she thinks will disappoint after an unexpectedly strong May report.

"The confluence of both should weigh on Aussie," Bourdeau told CNBC's Melissa Lee, so she wants to sell the Australian dollar against the safe haven yen. She recommends entering the trade at 81.00, setting a stop at 82.35 and a target of 78.50.

You can watch the discussion on the video clip, starting around 3:45.

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