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Funds Most Bearish on Aussie Since March on Global Recession Bet

  • Fund managers’ short positioning increases for a fourth week
  • Fed hikes and geopolitics are weighing on Australia’s dollar

Deepening recession fears have spurred fund managers to turn the most bearish on Australia’s dollar since March.

Hedge funds and their traditional asset manager peers ratcheted up short positions on the risk-sensitive currency to 61,405 contracts, Commodity Futures Trading Commission data compiled by Bloomberg show. They’ve collectively maintained short bets on the Aussie for 15-straight weeks, helping to drive the 4.6% loss in the currency this year.