AUD/USD: Speculators selling, and selling, and selling
Prime broker reports show that leveraged accounts were piling into AUD/USD shorts again yesterday with the compelling story of risk-off global sentiment, renewed USD bullishness, falling commodity prices and a sharp Chinese credit squeeze. Based on this back-drop it makes sense to be short AUD/USD.
But don’t forget that these are the same players who were limit long at 1.0500 based on exactly opposing fundamentals.
I had to reduce my long position last night as the risk was becoming a bit high but I will increase again at the slightest hint of a short-term technical bottom forming. I will reduce again below .9150 and accept the market’s wisdom.