• The net USD long position increased to $25bn reflecting the current bullish environment. CAD, AUD, EUR, GBP, CHF and JPY are not only held net short, but most positions are increasing, suggesting that traders are still building shorts and currencies are likely to remain under pressure.
• Bearish momentum against AUD shifted the net position from long to short $1.3bn, generating a sell signal. The shift came from a sudden surge in short positions as spot levels dropped through parity. As traders build out shorts it is likely that there is ongoing downward pressure on AUD.
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Scotiabank