Forex Strategy 07.09.2013: Looking for AUD/USD Short Trade Setup
The Australian Dollar has taken a heavy beating over recent weeks. Speculative net-short positions have stopped growing last week having hit a record high however, suggesting the trade may have become crowd and thereby vulnerable to upside surprises. Further, priced-in RBA rate cut expectations have been unwound, with traders no longer baking in a further 25bps reduction over the next 12 months. I will look for a corrective bounce to offer a selling opportunity in the days and weeks ahead.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.