Australian Dollar No Longer a Clear Sell versus Greenback
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AUDUSD – Extremely one-sided retail FX trader positions suggest that the Australian Dollar may remain in a downtrend versus the US Dollar. Yet a broader shift in USD positioning warns against buying into recent Greenback tumbles (selling AUDUSD gains).
Trade Implications – AUDUSD:Our data on retail trader open positions shows that long positions outnumber those short by an impressive 2.4 to 1—roughly unchanged from last week. Normally we would treat this as clear contrarian signal that the pair may continue lower. Yet it’s difficult to ignore the substantive swings in USD positioning versus other FX majors.
See next currency section: NZDUSD - New Zealand Dollar Gains May Slow
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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