Growing Shorts Suggest AUD's Bearish Outlook
According to data from the US Commodity Futures Trading Commission (CFTC), as of April 7, AUD speculative net short positions increased by 3,734 to 35,398 contracts, tripling from the level in mid-March. Among them, speculative long positions decreased by 832 to 26,583 contracts, while speculative short positions increased by 2,902 to 61,881 contracts.To get more news about forex signals, you can visit wikifx news official website.
Although the AUD has rebounded from its lowest point in 17 years, leveraged funds are still bearish about the currency, as Australia is heading for the first recession in decades and the unemployment rate is expected to rise in the coming months. With S & P downgrading Australia's credit rating, the chance that AUD may face another round of sell-off after the rebound is growing.