There’s an old saying in the FX market that when the taxi drivers start talking about a trade, it must be nearly over. Well the taxi drivers, barbers and barmen are positively screaming about the AUD/USD so perhaps the trend is reaching maturity, for a few months at least.
I’ve mentioned one macro trader in the past few weeks who’s been long AUD/USD since around 62 cents and he has started to book some profits. I’m hearing similar stories from the hedge fund world of top-class traders who’ve been on this trade for months if not years but are starting to take some serious money off the table. I don’t think any of them are saying that the trend is finished, merely that the ‘easy’ money has been made and that further gains are likely to be choppy.