Hedge funds still selling AUD, but they get it very wrong sometimes too
Our good friend Milan over at Order Flow Trading is reporting that hedge funds are still selling the AUD, and I have no doubt that he is right. But some of these hedge fund guys are dreadful traders and they get it horribly wrong as well (with other people’s money of course). Many of them had huge long positions near 1.0600 and now they are turning around and going short 15 big figures lower!
They may well be right and the AUD/USD is really going to zero, but take a minute and look again at the US debt situation and the amount of money they’ve been printing. Now do you really want to be long USD? If AUD/USD turns higher and breaks above .9260 then there could be a bloodbath of short-covering. Talking my position of course as always, but if I don’t… 🙂