Forex Flash: IMM positions suggest AUD, NZD may react sharply to data

Forex Flash: IMM positions suggest AUD, NZD may react sharply to data

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Forex Flash: IMM positions suggest AUD, NZD may react sharply to data - NAB

FITITOL--> FXstreet.com (Barcelona) - IMM speculative positions shows an interesting addition of market longs to the commodity currencies last week, notes NAB research team; "The NZD was the main beneficiary, although AUD and CAD also experienced a net long increase. This allowed NZD positioning to turn positive, CAD longs were added to and AUD positions were less short" says the bank.

"This data puts these growth sensitive currencies in a position to react quite sharply to data this week" according to Emma Lawson, FX strategist at NAB, also helping to explain "the increased divergence between the commodity prices and the AUD." The NAB model based on IMM positioning presently recommends "only an overweight in JPY and underweight in the NZD and CAD" the banks adds.