AUD: Looks Stretched; Better To Be Long CAD Than AUD Around Current Levels – Nordea

The Australian dollar enjoyed a gradual ascent with AUD/USD topping 0.78. This rise seems to have stalled. Is it ready to fall from here? We still have a few more events coming up.

Here is their view, courtesy of eFXnews:

Nordea Research discusses AUD outlook and notes that the currency looks stretched versus most currencies in the G-10 space. 

“Net long copper positioning is at record highs, and even a small correction in the long copper positioning would spell trouble for AUD versus the USD in coming months.

Therefore, if you want a late-cycle commodity FX bet, we think it’s better to be long CAD than the AUD,” Nordea advises.

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