Forex Flash: Specs record long AUD/USD - Westpac
FXstreet.com (Barcelona) - Friday's Commitment of Traders report on IMM positioning showed AUDUSD spec longs were extended yet again, "narrowly reaching a record high 92.2K contracts (face value AUD9.2bn)", notes Westac FX strategist Sean Callow.
"This is remarkable given Australia's slowing economy and narrowing yield differentials but highlights that it's not just central banks buying AUD despite RBA easing. A position of such size however is an obvious drag on further gains, with the low 1.05s proving rather hard work" Mr. Callow says.
With regards to the Japanese Yen, "there was also a sharp extension to JPY spec shorts, to -90.3K, the largest USDJPY long stance since July 2007 and another headwind for further USDJPY gains through 83" adds Sean, who sees USDJPY lower over the next month.
On the spec EURUSD front, "shorts were slashed to -32.8K from -66.7K, the least bearish euro stance since Sep 2011" the Westpac analyst concludes.
"This is remarkable given Australia's slowing economy and narrowing yield differentials but highlights that it's not just central banks buying AUD despite RBA easing. A position of such size however is an obvious drag on further gains, with the low 1.05s proving rather hard work" Mr. Callow says.
With regards to the Japanese Yen, "there was also a sharp extension to JPY spec shorts, to -90.3K, the largest USDJPY long stance since July 2007 and another headwind for further USDJPY gains through 83" adds Sean, who sees USDJPY lower over the next month.
On the spec EURUSD front, "shorts were slashed to -32.8K from -66.7K, the least bearish euro stance since Sep 2011" the Westpac analyst concludes.
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