Currencies | Feb 04 2016
By Davis Rodriguez, quantitative strategist, FXCM
AUDUSD– A substantial US dollar sell-off leaves the Australian Dollar higher through recent trading, but a fairly muted shift in retail forex trader sentiment gives little reason to expect this AUD/USD rally will be sustained.
Our data shows that retail traders are almost exactly neutral on the AUD/USD—51 percent of current open positions are long. Traders have most recently sold into AUD gains, and short interest is up 9 percent since last week. Yet we would need to see a more sustained shift towards selling to call for a larger AUD/USD breakout with real confidence.
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