Funds flip to bullish bets on Aussie

151
1
Funds flip to bullish bets on Aussie

None of the EU wants to ban Russian oil because of Hungarian demands.

Fast money funds have flipped to bullish bets on the beleaguered Australian dollar, just as their more traditional institutional peers double down on bearish bets.

The data from the Commodity Futures Trading Commission shows that funds moved to net-long Aussie positions for the first time since August 2021, according to the latest Commodity Futures Trading Commission data for the week through May 3. The data shows that asset managers doubled their net-short bets to over 33,000 contracts at the same time.

Australia's currency has fallen 7% against the dollar since April, as traders bet on a slowing Chinese economy and U.S. rate hikes that are faster than those at home. The growth-sensitive Aussie is a popular barometer of investor sentiment in the FX market.

It traded around 70.5 U.S. cents early in Asia on Monday.

John Hardy, head of FX strategy at Saxo Bank, wrote in a note that the Aussie could be the chief victim among G 10 currencies because of Chinese exposure, which is top of its traditional vulnerability to downdrafts in risk sentiment. He said that the 70 U.S. cent level will be a pivotal point for the currency.

None Formula One ever found a way to get Americans to care None U.S. Steel Bets on a New Technology and the South to Survive