Australian Dollar Likely to Continue Lower
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AUDUSD– Retail FX traders continue buying aggressively into Australian Dollar losses, and a contrarian view of ‘crowd’ sentiment acts as signal the AUD/USD may continue lower. Indeed, our data shows the majority of retail speculators most recently turned long as the pair crossed below $0.7600 through early May and have remained long without interruption.
Until we see a substantive turn in retail trader positioning, we believe the Australian Dollar may continue to fall versus its US namesake.
See next currency section:US Oil - Oil Prices Likely to Continue to Gain
--- 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.