Australian Dollar Outlook Uncertain until this Changes
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AUDUSD– A substantial US Dollar sell-off leaves the Australian Dollar higher through recent trading, but a fairly muted shift in retail forex trader sentiment gives little reason to expect this AUD/USD rally will be sustained.
Our data shows that retail traders are almost exactly neutral on the AUD/USD—51 percent of current open positions are long. Traders have most recently sold into AUD gains, and short interest is up 9 percent since last week. Yet we would need to see a more sustained shift towards selling to call for a larger AUD/USD breakout with real confidence.
See next currency section: NZDUSD - New Zealand Forecast Points to Further Gains
--- 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.