COT report: AUD longs back in fashion

Futures market speculative positioning data from the CFTC as of the close on Tuesday:

  • EUR net short 44K vs short 25K prior
  • JPY net short 80K vs short 94K prior
  • GBP net short 61K vs short 50K prior
  • AUD net long 54K vs long 7K prior
  • CAD net short 65K vs short 53K prior
  • NZD net long 12K vs long 19K prior
  • CHF net short 10K vs short 13K prior
  • US Dollar Index longs at 54K vs 32K prior

It doesn’t take much to inspire the market to pile into Australian dollar longs. We saw yen shorts trimmed back this week, which is a good sign if you’re thinking of buying USD/JPY at these levels.

The market got excited about the drama in Cyprus but anyone holding a euro short since Tuesday is starting to feel a bit of a squeeze.

Author: Adam Button

Adam Button is the editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes deeply in the value of knowing every tidbit of news. He has a background in journalism and was formerly the head of the markets team at the Canadian Economic Press. He is a graduate of Ryerson University and completed Level 1 of the CFA program. Adam lives in Montreal, follow him on Twitter: @FX_Button.

6 Comments

  1. Hi Adam, What did you mean by ,” which is a good sign if you’re thinking of buying USD/JPY at these levels.” Do you favour buying at this level or not. Thank you for sharing.

  2. I’m not really into the flow because I have been deathly ill for most of the week, so I don’t have a view on USD/JPY at the moment. It speaks for itself, if you were already thinking of buying, that’s another reason.

  3. Those cable shorts sure seemed to have switched sides bout mid week. Caught me in a ride I didn’t want to ride out. Took 100 pip loss on it. c’est la vie!

  4. Hi Adam,
    Could you explain a little the COT report, for e.g. if the market has increased the short eur positions then the market is more short so does this mean that there is a higher probablitlty that the price will go short? or is it the opposite.
    Also whats the difference in COT report and the SSI (Speculative Sentiment Index) or is it the same?
    Thanks,
    Anthony

  5. I disagree with you on the Yen shorts comment. To me it signifies there are less shorts to squeeze, this is aptly seen in the price action which is flat to down since Tuesday. If Yen-short OI continues dropping, people can forget their Abenomics / Yen100 target goodbye – atleast for a while. [IF it OI keeps dropping]

  6. AUD previous was 23k net long, not 7k

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