The Australian Dollar has taken a heavy beating over recent weeks but the case for a corrective upswing appears to be building. Speculative net-short positioning in the futures market is stabilizing after hitting a record high and traders are already pricing in 70% probability of another RBA rate cut in August, hinting a correction driven by profit-taking may be on the horizon as the bears run short on news-flow to perpetuate the selloff. I will look to enter short following a bounce pending technical confirmation of ebbing bullish momentum.

See Chart Here