By: Kelley Holland
Currency Blogger, CNBC.com
Currency Blogger, CNBC.com
 |
AP |
These markets are not kind to much of anything, and with commodity prices slipping, they may be claiming a new victim.
Todd Gordon, co-head of research and trading at Aspen Trading Group, has been looking at the Australian dollar[AUD=X 1.0132 
-0.0034 (-0.33%) 
] and he doesn't really like what he sees.
-0.0034 (-0.33%) ] and he doesn't really like what he sees.Gordon has been following the disturbing news from the euro zone, but he told CNBC's Squawk on the Street team that "the Aussie is actually outpacing the euro [EUR=X 1.4138 -0.0024 (-0.17%) ] to the downside."
-0.0024 (-0.17%) ] to the downside."The problem for the Australian dollar is the prospect of a global economic slowdown, the resulting pressure on the commodity export sector, and the prospect of lower interest rates, Gordon says. So he wants to trade against the euro fear.
"A pretty good little trade that you could put on would be long euro against the Australian dollar,"[EURAUD=X 1.3948 
0.0021 (+0.15%) ] he says, estimating [SKUL 15.64 -0.37 (-2.31%) ]that the pair could move to 1.3750.
0.0021 (+0.15%) ] he says, estimating [SKUL 15.64 -0.37 (-2.31%) ]that the pair could move to 1.3750.Gordon also predicted that the U.S. dollar could actually be stronger by the end of the year and that the Swiss National Bank "will get their faces ripped off" if they continue trying to stem the Swiss franc's rise. [CHF=X 0.7254 -0.0018 (-0.25%) ]
-0.0018 (-0.25%) ]