Australian Dollar Shows Early Signs of Turnaround
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Trade Implications – AUDUSD:The majority of traders in our sample have remained long the Australian Dollar as it failed to break above $0.9500 in July, and said fact has acted as steady contrarian signal in favor of AUDUSD weakness. Yet long positions actually declined by 5 percent since last week, while short positions are up 10 percent through the same stretch. It’s early, but a continued shift towards crowd selling and a shift to a net-short position would turn us bullish the Australian Dollar.
See next currency section: NZDUSD - New Zealand Dollar Rally has a Fighting Chance
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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