Key Shift in Sentiment May Pull Australian Dollar Lower
AUDUSD: Retail trader data shows 59.5% of traders are net-long with the ratio of traders long to short at 1.47 to 1. The percentage of traders net-long is now its highest since Apr 17 when AUDUSD traded near 0.75858. The number of traders net-long is 2.9% higher than yesterday and 11.1% higher from last week, while the number of traders net-short is 14.8% lower than yesterday and 22.7% 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 Dylan Jusino, DailyFX Research
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