Societe Generale Research discusses the latest CFTC report and AUD outlook around tonight's RBA June policy meeting.
"CFTC data up to last Tuesday show the market paring back its long dollar position since mid-May. The two biggest short positions against the dollar, in yen and sterling, have been cut back and excluding these, the market is now short of dollars. Fatigue has set in and the market lacks a new reason to buy the dollar," SocGen notes.
"There’s no major data until tomorrow’s RBA meeting (a hike is certain, a move of more than 25bp probably AUD-positive) and after that, Thursday’s US CPI data and the ECB meeting take centre stage," SocGen adds.
For bank trade ideas, check out eFX Plus.
