The Australian dollar slumped in the hours ahead of the RBA decision in a sign that the market is leaning towards a cut. AUD was the weakest performer along with NZD on Monday while the US dollar led the way after ISM manufacturing data. AUDNZD Premium is the sole Aussie trade currently in progress ahead of the RBA decision. 1 of the 3 GBPUSD longs was stopped out, whhile the remaining GBPNZD hit its final target.
The CFTC data we wrote about to start the week showed a shift into Australian dollar shorts and that continued to be the theme on Monday. AUD/USD slumped by as much as a half-cent on the day and finished near the lows.