Australian Dollar Likely to Hit Further Highs
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AUDUSD: Retail trader data shows 44.9% of traders are net-long with the ratio of traders short to long at 1.23 to 1. The number of traders net-long is 2.1% higher than yesterday and 24.5% lower from last week, while the number of traders net-short is 5.8% higher than yesterday and 5.7% higher 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. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger AUDUSD-bullish contrarian trading bias.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.