Australian Dollar Bias Remains Short After RBA Meeting
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AUDUSD: Retail trader data shows 49.7% of traders are net-long with the ratio of traders short to long at 1.01 to 1. The number of traders net-long is 7.1% higher than yesterday and 21.3% higher from last week, while the number of traders net-short is 0.1% higher than yesterday and 6.3% 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. 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.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
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