The Australian Dollar has taken a heavy beating over recent weeks. Speculative net-short positions have stopped growing last week having hit a record high however, suggesting the trade may have become crowd and thereby vulnerable to upside surprises. Further, priced-in RBA rate cut expectations have been unwound, with traders no longer baking in a further 25bps reduction over the next 12 months. I will look for a sizable corrective bounce from the 0.90 figure to offer a selling opportunity in the days and weeks ahead.
- Commodity Markets