Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Reasons for why I'm Short Australian Dollar

Reasons for why I'm Short Australian Dollar

David Rodriguez, Head of Product

I went short Australian Dollar last week and I've added to the position today, as I think there remains significant potential for further declines.

As I detailed on the Real Time News Feed last week, my initial entry was at the $1.0487 with a stop above $1.0550. I remain in that position as I look for the pair to test significant support at $1.0180.

Since then, I added to the position after Fed Chairman Ben Bernanke's address at Jackson Hole pushed the Dollar lower. I sold from $1.0330 with a stop above $1.0400.

Ultimately I'm paying a lot of attention to the fact that recent CFTC Commitment of Traders data shows Non-Commercial futures traders at their most net-long AUDUSD since the pair hit record-highs in 2011.

Our proprietary Speculative Sentiment Index data nonetheless shows that retail FX traders are now net-long the Australian Dollar. The combination of extremely short professional speculators and net-long retail traders provides the timing I often look for in a trade.

I will hold a base short position in the AUDUSD as long as we remain below $1.0550, while I may choose to scale out of a portion of the trade on a break below $1.0280.

Contact and Follow David via Twitter:

Receive David's report via Facebook:

--- Written by David Rodriguez, Quantitative Strategist for

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.