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Australian Dollar Forecast to Continue Higher versus US Dollar

Australian Dollar Forecast to Continue Higher versus US Dollar

David Rodriguez, Head of Product
Australian Dollar Forecast to Continue Higher versus US Dollar

Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.

AUDUSD: Retail trader data shows 27.3% of traders are net-long with the ratio of traders short to long at 2.66 to 1. In fact, traders have remained net-short since Jun 04 when AUDUSD traded near 0.74387; price has moved 6.6% higher since then. The number of traders net-long is 14.1% higher than yesterday and 10.6% higher from last week, while the number of traders net-short is 2.5% higher than yesterday and 5.8% 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. We will take a cautiously bullish contrarian trading bias for the AUDUSD until we see more sustained signs of a turnaround in sentiment.

See next article in this week’s report: S&P 500 - Remains a Buy until this Changes

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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