Australian Dollar Remains a Sell until this Changes
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AUDUSD – Our retail FX sentiment data shows that the vast majority of traders remain long the Australian Dollar versus the US Dollar, and a contrarian view of crowd opinion points to further AUD declines.
Trade Implications – AUDUSD:Last week we saw total long positions outnumber those short by over 3 to 1—matching extremes seen through May when AU$ tested key support at $0.9200. One-sided sentiment often coincides with short-term reversals, and indeed the AUDUSD trades modestly higher after setting fresh multi-year lows. Yet the actual extreme is only clear in hindsight. Until we see a sustained shift in sentiment we’ll continue call for AUDUSD weakness.
See next currency section: NZDUSD - New Zealand Likely Set Important Low versus US Dollar
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.