Add short AUD/USD - SocGen
Kit Juckes, Research Analyst at Societe Generale, suggests that the CFTC
data, in terms of outright positioning, show (falling) net shorts in
GBP, EUR and MXN, promising the hope of resilience, and longs in JPY,
CAD, AUD and NZD, which makes that set look more vulnerable.
“We’re stopped out of USD/CAD shorts, and to our existing dollar longs vs. NZD and GBP (which we’re staying with for now) we add short AUD/USD, where the chart looks awful and the market can rebuild shorts. I’ve written lots of times that I’m too timid to go long USD/JPY again yet and despite a market that is long yen, I am fearful that the EMFX weakness we are seeing can spill over to wider risk aversion and support the yen.”