Australian Dollar Poised for Continued Weakness
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AUDUSD – The majority of retail traders have remained long the Australian Dollar versus the USD since the pair turned lower from July highs near $0.9470. Our trading bias remains in favor of AUDUSD weakness.
Trade Implications – AUDUSD:The recent AUD bounce off of multi-month lows suggests that the pace of declines might slow, but we believe that a breakabove month-to-date highs near $0.9360 is necessary to call for a more important bounce. We would likewise need to see crowds selling into any such AUDUSD rally.
See next currency section: SPX500 - S&P 500 Seems Unbreakable, We Favor further Gains
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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