Australian Dollar Eyes Further Losses, Bias Remains Bearish
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AUDUSD: Retail trader data shows 53.3% of traders are net-long with the ratio of traders long to short at 1.14 to 1. The number of traders net-long is 10.5% higher than yesterday and 18.9% higher from last week, while the number of traders net-short is 6.7% lower than yesterday and 10.2% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUDUSD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger AUDUSD-bearish contrarian trading bias.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
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