Conflicting reports from Investment Banks on state of AUD market
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.

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Just tell me which one is Goldman Sachs then I will know which one to choose. lol
If last week’s EUR DNB was truly defended by China, then I suppose they ended up with tons of long positions. How can they afford it to go down?
You’re too good Sam, well it’s not the first!
And yes China will end up with lots of EUR but I think they are probably not dissatisfied to have a few extra billion EUR in their reserves when their USD exposure is measured in trillions.
True, they have trillions in US Tsy … they can afford it since they have the biggest reserves in the world
That makes Citi the first then
But hey, GS aren’t wrong, are they – anyone mad enough to trade FX is heading for an institution sooner or later
True enough Lilac, especially the much maligned cable traders!!
Well I wasn’t going to be specific
BTW:
http://ftalphaville.ft.com/blog/2009/11/20/84476/have-a-holly-jolly-rally-filled-christmas-goldman-says/
D’you know the story about the cuddly kittens?