IG client sentiment data shows 45.50% of traders are net-long AUD/USD, with the ratio of short to long sitting at 1.20 to 1. The number of traders who are net-long is 21.36% below yesterday’s levels and 39.21% lower from last week, while the number of traders net-short is 38.32% higher than yesterday and 64.44% above what was recorded in the previous week.
We typically take a contrarian view to crowd sentiment, and the fact that shorts are overwhelming longs suggests AUD/USD may remain on an upward trajectory. Overall, traders betting against AUD/USD are rising compared to yesterday and last week, and the combination of current sentiment and recent changes in positioning gives us a stronger AUD/USD-bullish contrarian trading bias.
