Currencies
Hedge Funds Catapult Aussie Short Bets to Near Three-Year High
- Aussie weakened more than 7% versus dollar over three months
- Investors positioning for uncertainty over US policy, CBA says
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Hedge funds are loading up on positions that profit from a weaker Australian dollar as the threat of US tariffs and the impact of a sluggish Chinese economy bludgeon the currency.
Leveraged funds boosted their bearish Aussie wagers to the most since March 2022, Commodity Futures Trading Commission data for the week ended Dec. 31 show. The positions may have room to extend, given the Aussie’s sensitivity to changes in risk sentiment.