Recent Flip in Sentiment Provides Little Clarity for the Australian Dollar
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at -1.14 as 47% of traders are long. Yesterday the ratio was -1.17; 46% of open positions were long. Long positions are 2.3% higher than yesterday and 6.1% below levels seen last week. Short positions are 0.3% lower than yesterday and 4.5% below levels seen last week. Open interest is 0.9% higher than yesterday and 11.4% 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 further short 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 Could Rally Further as Sentiment Turns More Bearish
--- Written by Christopher Vecchio, Currency Strategist
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