The Australian dollar enjoyed the weakness of the US dollar to advance. Mostly positive Australian data helps as well. What’s next? Here is the view from BTMU:
Here is their view, courtesy of eFXnews:
BTMU FX Strategy Research notes that the latest IMM positioning report revealed that the AUD has been the main beneficiary amongst the G10 currencies from the favorable environment for carry trades.
“The report revealed that leveraged net long Australian dollar positions in the latest week reached their highest level since early in 2013,” BTMU adds.
“The technical set up appears increasingly bullish for the Aussie as well.
The AUD/USD rate has just closed above its 200-week moving average for the first time since May 2013 with little technical resistance beyond the May 2015 high at 0.8164. A break above would increase the likelihood that the Aussie rebound could extend further into the mid-to-high 0.8000’s in the year ahead,” BTMU argues.
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