Aussie Seen Rebounding from 2023 Trough on China Stimulus Hopes
- Funds’ net short Aussie dollar position hits a record high
- Strategists forecast currency will end this year at 66 cents
This article is for subscribers only.
Investors betting Australia’s dollar will continue to weaken may want to reconsider. Analysts see the currency rebounding on China stimulus and Reserve Bank of Australia rate-hike prospects.
The Australian dollar fell to a 10-month low of 63.57 cents versus the greenback last week, with asset managers holding a record net short position of 94,107 contracts on the currency. Growth concerns in China, the nation’s largest export market, and higher US yields have made it the worst-performing G-10 currency this quarter.