Currency Movements and Market Reactions

The Australian CFTC AUD net positions have changed from $-62.9K to $-21.9K. This shift shows that market participants are becoming more positive about the Australian dollar. Additional reports from FXStreet highlight movements in other currency pairs. The USD/CAD pair is bouncing back as the US dollar strengthens, while the EUR/USD pair is dropping due to cautious market sentiment. Additionally, the EUR/GBP forecast is focusing on support levels around 0.8700, with the GBP remaining stable thanks to the support of the Bank of England. FXStreet also covers major currencies and assets. The EUR/USD is holding below 1.1800, and the GBP/USD has fallen below 1.3500 due to light trading conditions. Gold is correcting after reaching new highs, and Bitcoin, Ethereum, and XRP are regaining strength.

Best Brokers and Trading Insights

FXStreet provides insights on the best brokers for 2025. This includes options for cost-conscious traders, the best regulated brokers, and those offering Islamic and swap-free accounts. There are also suggestions for brokers with low spreads, high leverage, and those skilled in trading gold and the EUR/USD pair. We’ve noticed a big shift in the Australian Dollar futures market, with speculators cutting their net short positions by over half. This indicates a strong decrease in bearish sentiment as traders are moving away from bets against the AUD. This is one of the most aggressive exits from short positions we’ve seen this year. This change corresponds with recent developments from late 2025. The Reserve Bank of Australia’s minutes from December were more positive than expected, and better industrial output data from China has pushed iron ore prices back above $120 per tonne. This context explains why large investors are becoming less negative about the Aussie. In late 2023, we also saw a sharp reduction in net shorts before a multi-week rally in the AUD/USD. When sentiment shifts so quickly, it often signals a turning point for the currency. This historical pattern increases our confidence in the current situation. As we approach December 29, 2025, we face thin market liquidity, which can amplify price movements. For derivative traders, this environment may lead to a potential short squeeze, making bullish strategies such as buying call options or selling out-of-the-money puts on the AUD appealing. The decreased selling pressure combined with low volume could trigger a significant rally in early 2026. Create your live VT Markets account and start trading now.

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