The rise in net-long interest has fueled the crowding behavior as 72.22% of traders were net-long AUD/USD last week, while the decline in net-short position comes as the exchange rate bounces back from a fresh yearly low (0.6993). The number of traders net-long is 6.77% higher than yesterday and 6.77% higher from last week, while the number of traders net-short is 27.74% higher than yesterday and 5.19% lower from last week.
The IG Client Sentiment report shows 76.95% of traders are currently net-long AUD/USD, with the ratio of traders long to short standing at 3.34 to 1. appear to be on track to implement higher interest rates in 2022, but a further depreciation in the exchange rate may fuel the tilt in retail sentiment like the behavior seen earlier this year. In turn, the diverging paths between the RBA and Federal Reserve may keep AUD/USD under pressure as Chairman Jerome Powell and Co. ”Īs a result, the Australia Dollar may continue to underperform against its US counterpart as the RBA pledges to “ not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range ,” and it seems as though the central bank will carry out a wait-and-see approach over the coming months as the “ Board is prepared to be patient. are widely expected to keep the official cash rate at the record low of 0.10%, and the central bank may merely attempt to buy time the after concluding its yield-curve control (YCC) program in November as “t he Board is committed to maintaining highly supportive monetary conditions to achieve a return to full employment in Australia and inflation consistent with the target. However, the RBA’s last rate decision for 2021 may do little to shore up AUD/USD as Governor Philip Lowe and Co. AUD/USD Forecast: Australian Dollar Susceptible to Wait-and-See RBAĪUD/ USD appears to be defending the October 2020 low (0.6991) following the kneejerk reaction to the US Non-Farm Payrolls (NFP) report, and looming developments in the Relative Strength Index (RSI) may indicate a near-term rebound in the exchange rate as the oscillator is on the cusp of climbing above 30 to offer a textbook buy signal.
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