CTAs and systemics aggressively bought Australian dollars last week, undoing some of the recent bearish imbalance.

BofA has more.

With trend followers stretched long USD and only moderately long US equities, the SG CTA benchmark posted declines on the week.

In FX, our model covered short EUR, GBP, and AUD positions this week and is still short CAD and MXN.

We note that trigger levels vary among actual CTAs and that trend followers still short EUR, GBP, and AUD could reduce the size of their positions in the coming days especially if USD continues its decline.

EUR/USD has come in some which is less DXY bearish.

The/AUD squeeze has been more violent.

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I’m stunned the AUD has not climbed extra on this sort of transfer. That may counsel there are nonetheless vital outflows underway.

Anyway, there may be scope for robots to go both approach right here now.