JPY leads currency buying as AUD faces liquidation

Good Morning. This is your weekly COT Digest. Speculators added new longs and covered shorts in JPY in size this week. AUD saw selling, but that was the smaller side of the tape.

JPY

The heaviest buying of the week: new longs and short covering while net long, +31.59% of the book. This is a second week of buying. The book is a crowded long versus the prior 52 weeks. Spot did not continue the buying from the report date close (Tue 15 Sep) to the latest price when the report was released (Fri 18 Sep); it moved the other way, -1.0%.

CAD

New longs and short covering while net short, +18.35% of the book. This is a second week of buying. Spot did not continue the buying from the report date close (Tue 15 Sep) to the latest price when the report was released (Fri 18 Sep); it moved the other way, -0.5%.

NZD

The book is a crowded long versus the prior 52 weeks. New longs while net long, +9.32% of the book. Spot did not continue the buying from the report date close (Tue 15 Sep) to the latest price when the report was released (Fri 18 Sep); it moved the other way, -0.6%.

EUR

New longs and short covering while net short, +3.55% of the book.

CHF

New longs while net short, +1.54% of the book.

AUD

Long liquidation while net short, -1.46% of the book. This marks a flip from new longs last week. Spot continued the selling from the report date close (Tue 15 Sep) to the latest price when the report was released (Fri 18 Sep), -0.1%.

Broad USD positioning saw long liquidation and new shorts, -17.88% of the book. Index did not continue the selling from the report date close to the release close; it moved the other way, +0.5%.

JPY posted the largest buying move of the week with new longs and short covering into a crowded long versus the prior 52 weeks.
AUD flipped to long liquidation while still net short.
Broad USD positioning saw long liquidation and new shorts.

Disclaimer: COT reflects positioning and sentiment, not trade timing or price predictions.