Australian Dollar Forecast Unclear
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at -1.22 as 45% of traders are long. Yesterday the ratio was -1.38; 42% of open positions were long. Long positions are 2.4% higher than yesterday and 8.8% below levels seen last week. Short positions are 9.7% lower than yesterday and 30.8% above levels seen last week. Open interest is 4.6% lower than yesterday and 5.4% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the AUDUSD may continue higher. The trading crowd has grown less net-short from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: NZDUSD - New Zealand Dollar Outlook Uncertain
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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