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Last week’s Commitment of Traders report for the Australian dollar is out and shows a decent clean out of what was a very short market with shorts down to -33.6 contracts:
The market is now the least short since July when the Aussie was trading at 74 cents.
With the extreme short position gone, Australian data flow now muted, the Mining GFC advancing at a good clip, no bottom in sight for iron ore, and the FOMC about to hike interest rates, I would not be surprised to see the Aussie roll over in short order.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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