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Hedge Funds Play Tug-of-War With the Volatile Australian Dollar

  • One of the best times to trade the Australian dollar, AMP says
  • Morphic’s Wood selling Aussie at 72 cents, buying in high 60s
Aussie En Route to 70 Cents as Market Loses Faith in Rulers

Photographer: Brendon Thorne/Bloomberg

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Hedge funds are ratcheting up wagers on the Australian dollar -- in both directions -- after it became the most-volatile Group-of-10 currencies in the past month.

“It’s one of the best times to trade,” said Nader Naeimi, who has short positions on the currency at the dynamic market fund he manages at AMP Capital Investors Ltd. “A lot of the good news is priced in the Aussie now so there’s room for disappointment. That said, it’s still so influenced by risk-on, risk-off sentiment so it gives you room to trade.”