Australian Dollar Forecast Calls for Further Weakness
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AUDUSD – The retail forex trading crowd remains steadily long the Australian Dollar versus the US Dollar, and a contrarian view of crowd sentiment leaves our long-standing bearish trading bias intact. The majority of traders in our sample have remained long since the pair crossed below $0.80 in May.
It is worth noting that positioning is actually less net-long since last week; total open short positions rose 10 percent while longs fell 14 percent. Yet we would need to see a much more significant shift to call for a meaningful reversal.
See next currency section: NZDUSD - New Zealand Outlook Remains Bearish
--- 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.