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9 Sep 2013
Flash: AUD short specs seem vulnerable - BBH
FXstreet.com (Barcelona) - In the last week of August and into the US holiday on Sept 2, speculative positioning adjustments in the futures market were minimal, notes Marc Chandler, Global Head of Currency Strategy at BBH.
Key Quotes
"There was only one adjustment of gross positions larger than 10k contract and that was the liquidation of long euro contracts. Recall that the summer rally in the euro coincided less with short covering and more with new longs being established. Those longs are now being cut. Of the remaining 13 gross positions we track, 10 of them saw adjustments less than 5k contracts."
"While the gross long euro position is the largest still near 100k contracts, the gross short positions are substantial as well (almost 76k contracts). Given the price action, and in particular, the fact that the euro was broadly sideways between $1.32-$1.34, perhaps it is understandable."
"However, the nearly as large gross short sterling positions, and even larger gross short Australian dollar positions (71k and 85.2k respectively) seem more like resisting the price action. Over the past month, those two have been the strongest of the major currencies, gaining 1.9% and 2.2% respectively, against the greenback. These positions therefore seem vulnerable."
Key Quotes
"There was only one adjustment of gross positions larger than 10k contract and that was the liquidation of long euro contracts. Recall that the summer rally in the euro coincided less with short covering and more with new longs being established. Those longs are now being cut. Of the remaining 13 gross positions we track, 10 of them saw adjustments less than 5k contracts."
"While the gross long euro position is the largest still near 100k contracts, the gross short positions are substantial as well (almost 76k contracts). Given the price action, and in particular, the fact that the euro was broadly sideways between $1.32-$1.34, perhaps it is understandable."
"However, the nearly as large gross short sterling positions, and even larger gross short Australian dollar positions (71k and 85.2k respectively) seem more like resisting the price action. Over the past month, those two have been the strongest of the major currencies, gaining 1.9% and 2.2% respectively, against the greenback. These positions therefore seem vulnerable."