Sentiment Positive on AUD/USD, NZD/USD, Bearish on USD/CAD

of clients are net long.

of clients are net short.

Change in	Longs	Shorts	OI
Daily	-18%	27%	2%
Weekly	-42%	95%	-5%

AUD/USD IG CLIENT SENTIMENT OUTLOOK – BULLISH

IG client sentiment data shows 45.50% of traders are net-long AUD/USD, with the ratio of short to long sitting at 1.20 to 1. The number of traders who are net-long is 21.36% below yesterday’s levels and 39.21% lower from last week, while the number of traders net-short is 38.32% higher than yesterday and 64.44% above what was recorded in the previous week.

We typically take a contrarian view to crowd sentiment, and the fact that shorts are overwhelming longs suggests AUD/USD may remain on an upward trajectory. Overall, traders betting against AUD/USD are rising compared to yesterday and last week, and the combination of current sentiment and recent changes in positioning gives us a stronger AUD/USD-bullish contrarian trading bias.

Source: DailyFX

of clients are net long.

of clients are net short.

Change in	Longs	Shorts	OI
Daily	-10%	25%	8%
Weekly	-30%	43%	1%

NZD/USD IG CLIENT SENTIMENT OUTLOOK – BULLISH

IG Client Sentiment data shows 41.85% of traders are net-long NZD/USD, with the ratio of short to long standing at 1.39 to 1. Further, data reveals that traders are now at their least net-long since Dec 27 when the pair traded around 0.63. Overall, the number of traders net-long is 17.75% lower than yesterday and 34.71% below last week’s level, while the number of traders net-short is 28.78% higher than yesterday and 20.00% above what was observed last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short in aggregate suggests NZD/USD may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes in positioning gives us a stronger NZD/USD-bullish contrarian trading bias.

Source: DailyFX

of clients are net long.

of clients are net short.

Change in	Longs	Shorts	OI
Daily	2%	-5%	0%
Weekly	16%	-23%	0%

USD/CAD IG CLIENT SENTIMENT OUTLOOK – BEARISH

IG Client Sentiment data shows 66.59% of traders are net-long with the ratio of long to short at 1.99 to 1. The number of traders net-long is 0.36% higher than yesterday and 10.43% below last week’s prevailing level, while the number of traders net-short is 16.67% lower than yesterday and 3.78% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are overwhelmingly net-long suggests USD/CAD may continue to retreat. Positioning is more net-long than yesterday but less net-long from last week. All in all, the combination of current sentiment and recent changes in the balance of shorts and longs gives us a bearish trading bias.