FXStreet (Bali) – Open interest in the AUD/USD futures market increased with leveraged money committing to the short-side once again, a move also backed up by the increase in dealer longs, implying that the move seen from May 27 to June 2nd has substance/smart money behind.
RBA short-covering not backed up by specs buying
Commercials were active buyers on the way down towards 0.76 up to Tuesday June 2nd, when the RBA monetary policy decision led to a significant 2 cents rally in the Aussie, which was mostly driven by a withdraw of liquidity by market makers rather than any significant net increase in leverage accounts.
AUD/USD: Asset managers reinstate shorts aggressively
The icing on the cake to cement the notion of an increased bearish commitment was the big jump in asset managers’ short positions, probably taking the chance post RBA to load up new positions short-side. Lastly, lev fund shorts also jumped vs lev funds longs. The analysis of the last CFTC report suggests AUD/USD is a market in which we should find plenty of supply sources, although being aware of macro bids at the all important 7550/76.
(Market News Provided by FXstreet)