Australian Dollar Outlook Unclear until this Changes
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AUDUSD: Retail trader data shows 35.6% of traders are net-long with the ratio of traders short to long at 1.81 to 1. In fact, traders have remained net-short since Jan 09 when AUDUSD traded near 0.71893; price has moved 6.5% higher since then. The number of traders net-long is 5.2% lower than yesterday and 20.2% higher from last week, while the number of traders net-short is 12.5% lower than yesterday and 13.1% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests AUDUSD prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current AUDUSD price trend may soon reverse lower despite the fact traders remain net-short.
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