Hedge Funds Bet Aussie Will Overcome Impact of Coronavirus
- Job data Thursday may spur traders to trim rate-cut forecasts
- Aussie slid to 11-year low last week as China shut factories
A shop assistant works in Sydney on Jan. 31.
Photographer: Jenny Evans/Getty ImagesThis article is for subscribers only.
Is the Australian dollar close to a turning point? Some hedge funds seem to think so.
Leveraged investors have turned positive on the Aussie in recent weeks even as the spread of the deadly coronavirus in China saw the currency slide to the weakest level in almost 11 years. One of the main arguments from Aussie bulls is that a resilient local economy will rule out further interest-rate cuts, giving the battered currency room to recover.