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21 Jun 2013
Flash: Buying AUD/USD still not advisable - TDS
FXstreet.com (Barcelona) - At this rate of depreciation, a quick retreat to 0.90 in AUD/USD — the level we suspect the RBA is implicitly targeting—is not implausible, comments Alvin Pontoh, FX Strategist at TDS.
However, as Pontoh highlights, "traders’ positioning cautions against chasing the AUD lower." The Strategist reminds us that net AUD shorts reached an unprecedented 63.2k last week, "suggesting vulnerability to short-covering once, or if, the initial ‘taper’ (over-) enthusiasm starts to fade" Pontoh said. Being said that, the TDS Strategist still does not recommend buying the AUD/USD.
However, as Pontoh highlights, "traders’ positioning cautions against chasing the AUD lower." The Strategist reminds us that net AUD shorts reached an unprecedented 63.2k last week, "suggesting vulnerability to short-covering once, or if, the initial ‘taper’ (over-) enthusiasm starts to fade" Pontoh said. Being said that, the TDS Strategist still does not recommend buying the AUD/USD.