Managing An Existing Macro Position - Aussie Dollar Example from Bridgewater As Would Be Managed by Caxton Associates

Having been asked what would a trader or macro manager do now on the Aussie Dollar position mentioned in a couple of articles (here and here) here is a response. Below in graphic one is the original set-up graphic annotated to show the current A$/US$ rate.Graphic One - A$ v US$ over the six months to 9th March 2012 Sources: www.fxstreet.com, Hedge Fund Insight Clearly the risk/reward has worked