Australian Dollar Forecast to Rally Further
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AUDUSD: Retail trader data shows 40.8% of traders are net-long with the ratio of traders short to long at 1.45 to 1. In fact, traders have remained net-short since Jun 04 when AUDUSD traded near 0.74861; price has moved 0.7% higher since then. The number of traders net-long is 18.6% higher than yesterday and 0.4% lower from last week, while the number of traders net-short is 3.9% higher than yesterday and 23.2% 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. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed AUDUSD trading bias.
See next article in this week’s report: S&P 500 - S&P Remains a Buy until this Changes
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