When China surprised investors with an interest rate cut, it sent the Australian dollar soaring. This strategist thinks the Aussie is headed back to earth.
Few expected China's central bank to cut interest rates - but cut it did, and investors jumped. None more than long suffering holders of the Australian dollar, a major laggard through the first quarter.
Willie Williams, director of institutional derivative sales at Societe Generale, says the fun is just about over.
"I think that the move by China indicates that they are concerned about growth," he told CNBC's Scott Wapner. A simple interest rate cut would have been good news, he says, but China also adjusted deposit rates and lending rates, "implying that we won't see a big investment stimulus like we did in 2008."
So Williams wants to sell the Australian dollar against the U.S. dollar at 0.9975 with a stop at 1.0175 and a target of 0.9500.
You can watch the discussion on the video.
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