Aussie Futures Show Bulls Committed With Uptrend
Preliminary data from the CME Group shows that futures traders continue to add new long-sided business in the 6A contract (AUD/USD) this week, as the Aussie continues its relentless course north, following upbeat Australian employment numbers on Thursday.
The
increase in open interest on Thursday, with 2,181 new contracts added
in a day in which a bullish outside bar was printed, cements the view
that the rise this week, has been yet again, true demand by large
players, as the Aussie heads for a second weekly close above 0.77 since
first breaching the level mid-March.
Open interest: Buy campaign in AUD/USD throughout the week
The
increase in open interest on Thursday follows four straight days of
open interest increases, these being 0.5k, 2.9k, 4.5k and 2.5k from
Monday to Thursday respectively, in a week where the pair has made a
solid move from mid 75 all the way towards the 7750 area. The overall
net change in open interest this week alone stands at around 10k new
contracts, suggesting that risks remain to the upside as additional long
positions looking to get paid are built.
Note, if instead of an
increase in open interest in the 6A contract this week, we had
witnessed negative readings on this front, that would suggest a
withdrawal of liquidity or period of distribution, in which the aim by
institutions tends to be the closing of long-held positions. In other
words, a rise in price via a reduction in open interest readings does
not carry commitment by market players, instead tends to be a
manipulated move to either enter a phase of market accumulation to short
the market at the best possible price for what may be a potential build
up of a sell campaign.
(Market News Provided by FXstreet)
