Flash: AUD remains vulnerable to near term short squeeze - BTMU

FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the elevated level of short Australian dollar positions remains vulnerable to a short squeeze in the near-term.

Key Quotes

“The next key resistance areas for AUD/USD come in at around 0.9350 and 0.9500. However the improving China growth outlook is not really evident yet in higher prices of raw industrial commodity prices which are required to sustain a stronger Australian dollar.”

“The spot price of iron ore and coal still remain around 30% and 45% below their peaks from 2011.”