As I wrote on Friday, one US investment bank issued a warning to their clients regarding the state of the AUD market- namely that it is very long and in danger of a big clean-out. Now another US investment house has issued an analysis of market flows, finding that despite significant selling by leveraged, speculative players, the AUD is holding up well and is ready for another rally. Pick your own poison I guess.
One point to note is that the former have included the retail market in their analysis whereas the latter are too arrogant and still think that FX is an institutional matter. They’ll learn.
