IMM data for the week to Aug 31st shows traders continuing to pare USD shorts. The change was fairly broad base, but mostly concentrated against risk/growth sensitive pairs; meaning that positioning was more based on sentiment rather than add to USD positions, which also is supported by the dip in open interest.
EUR net shorts were increased while EUR/USD slid into the end of the month. There has been a bounce since, which could suggest traders are squaring back toward neutral. GBP saw an extension of shorts amid GBP underperformance and a soft string of data.
JPY was little changed as USD/JPY stayed range bound, but while still stretched in terms of long positioning risks for a squeeze are still apparent. CHF is in the same boat but saw a mild extension in net longs. CHF and JPY are being favored in the 'risk off' environment, which left them at a disadvantage on their crosses as risk appetite picked up of Fri after the US employment.
AUD and NZD saw net longs slip, although CAD positioning switched over to net short due to a surge in short positions. CAD outperformed after better than expected US payrolls as BoC tightening expectations increased after having been reduced due to a weak string of N.Am data. This could suggest these added positions have been squeezed. SI