The Australian Dollar's Outlook Darkens
- Currency has fallen for four weeks, longest stretch in a year
- Funds may turn short if commodities fall more: Credit Agricole
Australian one-dollar coins, one-hundred dollar and fifty dollar banknotes are arranged for a photograph in Sydney, Australia, on July 4, 2016.
Photographer: Brendon Thorne/BloombergThis article is for subscribers only.
Hedge funds are giving up on the Australian dollar.
Leveraged funds cut net long positions to 12,879 contracts in the week through May 9, the sixth straight reduction and down from as high as 53,601 at the start of March, according to data from the Commodity Futures Trading Commission. Optimism has evaporated as the prices for iron ore, Australia’s biggest export earner, plunged.