Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Australian Dollar Positions at Multi-Year Extremes, Rallies Likely

Australian Dollar Positions at Multi-Year Extremes, Rallies Likely

David Rodriguez, Head of Product


Why and how do we use the SSI in trading? View our video and download the free indicator here

AUDUSD– Retail FX traders have sold aggressively into recent Australian Dollar strength versus the US Dollar, and a contrarian view of crowd sentiment suggests that the AUD/USD may rally further through near-term trading. In fact, outstanding AUD/USD-short positions outnumber those long by an impressive 1.8 to 1; this is the most extreme such reading since the pair traded near $1.0500 in April, 2013.

Such one-sided sentiment readings can coincide with important extremes, but virtually by definition these extremes are only clear in hindsight. As long as retail FX traders continue to sell, we will remain in favor of buying into AUD/USD gains.

See next currency section: NZDUSD - New Zealand Dollar in Position to Strengthen

--- Written by David Rodriguez, Quantitative Strategist for

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.